Markets in Red, Sensex Slumps 281 Points to 32088, Nifty at 10021

Markets in Red, Sensex Slumps 281 Points to 32088, Nifty at 10021

Markets in Red, Sensex Slumps 281 Points to 32088, Nifty at 10021

Key Indian equity indices on Friday witnessed the steepest fall since November 2016, on the back of escalating geo-political tensions between North Korea and the USA, a weak rupee and heavy selling pressure in capital goods, metal and banking stocks. The broader Nifty lost 157.50 points, or 1.56%, to close at 9,964.40.

Meanwhile, the rupee weakened past the 65 mark to hit near-six-month low against the United States dollar as foreign investors continued to liquidate their holdings in the local equity markets due to domestic headwinds led by slowing growth, wider second quarter current account deficit and signs of a wider fiscal deficit. "Investors are also fretting on the impact on fiscal deficit targets if the government were to go overdrive with economic revival plans".

Market across the globe turned cautious as geo-political issues returned following fresh barrage of barbs between US President Donald Trump and North Korean president Kim Jong-un, threatening destruction of North Korea and fresh Hyderogen bomb test in pacific by latter. This is also the weakest closing since September 11 when the index had hit 31,882.16.

BSE realty melted the most by 4.29 per cent.

"The domestic currency hit 65 levels against the U.S. dollar for the first time in more than five months on the back of speculation about the government going in for a fiscal deficit relaxation, with talk of a Rs 40,000-Rs 50,000 crore stimulus".

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There was no let-up in foreign selling as FPIs sold shares worth Rs 1,204.95 crore while domestic institutional investors (DIIs) bought equities worth a net Rs 1,416.55 crore on Thursday, as per provisional data.

The rupee fell 31 paise to 65.12 against the dollar, its lowest level since May 23 in early trade at forex market, said a PTI report on Friday.

However, the rupee recovered in the intra-day trade to end the day at 64.79 per dollar.

Top gainers on Friday included Wipro, Coal India, HCL Tech and Bharti Infratel while Tata Steel, L&T, Reliance, ICICI Bank, Hindalco, Vedanta, Yes Bank, Ultratech Cement and Hero Motocrop declined. Metal, capital goods and power too added to the weakness.

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