You are here: Home » Markets » News

MARKET WRAP: J&K developments, trade war send Sensex tumbling 418 points

Nifty auto, metal, PSU bank, realty, private bank, and financial services indices ended between 1.4 to 2% lower. NIfty IT index settled 0.63% higher.

SI Reporter  | New Delhi 

EVENT HIGHLIGHTS

(Photo: Kamlesh Pednekar)
(Photo: Kamlesh Pednekar)
Tensions in the northern state of Jammu and Kashmir coupled with simmering trade war concerns between the United States and China led to broad-based sell-off at D-street on Monday as benchmark indices plunged up to 675 points at the S&P BSE Sensex and 215 points at the Nifty50 intra-day. Benign corporate earnings and sluggih economic activity furter contributed to fresh-five month lows during the volatile trade.

The Sensex ended 418 points, or 1.13 per cent, lower at 36,700 levels dragged by selling across public sector banks and metal counters. YES Bank, Tata Motors, Power Grid, and Reliance Industries were the top laggards while Bharti Airtel, Tech Mahindra, TCS and Bajaj Auto gained the most during the day. The Nifty50, too, slipped 135 points, or 1.23 per cent, to settle at 10,863 mark. India VIX, the volatility index, rose 15 per cent intra-day.

The Narendra Modi government on Monday moved to scrap provisions under Article 370 of the Indian Constitution, which grants a special status to the state of Jammu & Kashmir in the Union of India.

It has decided that Jammu and Kashmir would be turned into a Union Territory with a legislature, similar to Delhi and Puducherry, and the Ladakh division would be made a separate Union Territory without legislature, akin to Chandigarh and most other Union Territories. READ MORE

In the broader-market, S&P BSE Mid-cap dipped to 13,376 level, down 170 points, or 1.26 per cent. The S&P BSE Small-cap closed at 12,285 level, down 212 points, or 1.7 per cent.

Sectorally, all but Nifty IT index ended with cuts. Nifty auto, metal, PSU bank, realty, private bank, and financial services indices ended between 1.4 to 2 per cent lower. NIfty IT index settled 0.63 per cent higher at close.

GLOBAL CUES

Global stocks fell for a sixth day on Monday as an escalation of trade tensions between the United States and China spooked and the yuan fell to its lowest levels in over a decade.

Asian shares suffered their steepest daily drop in 10 months, with MSCI’s broadest index of Asia-Pacific shares outside Japan sinking 2.5% to depths not seen since late January. Japan's Nikkei ended 1.74 per cent lower while South Korea's Kospi slipped 2.56 per cent. China's Shanghai Composite index, too, shed 1.62 per cent at close.

(With inputs from Reuters)

CATCH ALL THE LIVE UPDATES

Auto Refresh