Nifty drops below 10,000

Key benchmark indices extended intraday losses in mid-afternoon trade on weak global cues. At 14:15 IST, the barometer index, the S&P BSE Sensex lost 399.65 points or 1.23% at 31.970.39. The Nifty 50 index fell 142.05 points or 1.4% at 9,979.85. The Sensex slipped below the 32,000 mark in mid-afternoon trade. The Nifty was trading below the crucial 10,000 level after falling below that level in afternoon trade.

Market sentiment took a hit after North Korea's threat that it could consider testing a nuclear weapon in the Pacific.

North Korea's foreign minister reportedly warned yesterday, 21 September 2017 that Pyongyang could test a hydrogen bomb over the Pacific Ocean in response to US President Donald Trump's threats of military action.

The Sensex tumbled 434.02 points or 1.34% at the day's low of 31,936.02 in mid-afternoon trade, its lowest level since 11 September 2017. It fell 27.23 points or 0.08% at the day's high of 32,342.81 in early trade. The Nifty lost 152.85 points or 1.51% at the day's low of 9,969.05 in mid-afternoon trade, its lowest level since 11 September 2017. It fell 26.85 points or 0.26% at the day's high of 10,095.05 in early trade.

Among other indices, the S&P BSE Mid-Cap index fell 2.33%. The S&P BSE Small-Cap index lost 2.42%. The losses in both the indices were higher than the Sensex's slide in percentage terms.

Broad market depicted weakness. There were more than four losers for every gainer on BSE. 2,015 shares declined and 500 shares advanced. A total of 131 shares were unchanged.

Aviation stocks declined. Jet Airways (India) (down 3.53%) and SpiceJet (down 1.17%) edged lower.

InterGlobe Aviation fell 1.3% at Rs 1,121. The company announced that a committee of the Board of Directors approved allotment of 3.35 crore equity shares to qualified institutional buyers at an issue price of Rs 1,130 per share. The announcement was made after market hours yesterday, 21 September 2017.

Gas utility stocks tumbled. Indraprastha Gas (down 5.02%), Gujarat State Petronet (down 3.99%), GAIL (India) (down 1.68%), Gujarat Gas (down 1.29%) and Petronet LNG (down 1%) declined.

Infosys fell 1.82% at Rs 893. Infosys Finacle, part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys announced a partnership with ToneTag, a provider of near-field communications, payments and location based services using sound waves. The announcement was made during market hours today, 22 September 2017.

The India Meteorological Department (IMD) in its weekly weather report said that for the country as a whole, cumulative rainfall during this year's monsoon upto 20 September has been 5% below the normal rainfall. The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.

Overseas, European stocks were mixed and most Asian stocks edged lower after North Korea's threat that it could consider testing a nuclear weapon in the Pacific.

European Central Bank (ECB) President Mario Draghi said yesterday, 21 September 2017 that monetary policy is not the right instrument to address financial imbalances in the euro zone and macroprudential tools must be used to tackle local issues.

US stocks declined yesterday, 21 September 2017 as profit booking emerged after recent winning streak.

In the economic news, the US initial claims for state unemployment benefits declined 23,000 to a seasonally adjusted 259,000 for the week ended 16 September, the Labor Department said yesterday, 21 September 2017.

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