Key benchmark indices dropped over 1% as sharp drop in European stocks and subdued Asian stocks weighed on sentiment on the domestic bourses. The barometer index, the S&P BSE Sensex, fell 362.43 points or 1.14% at 31,388.39, as per the provisional closing data. The Nifty 50 index shed 116.75 points or 1.18% at 9,796.05, as per the provisional closing data. Market sentiment was dull amid geopolitical tensions in the aftermath of North Korea firing a missile over northern Japan. The Sensex and Nifty, both, hit one-week low. All the nineteen sectoral indices on BSE were in the red.
The Sensex declined 390.01 points or 1.22% at the day's low of 31,360.81 in mid-afternoon trade, its lowest level since 22 August 2017. It fell 11.02 points or 0.03% at the day's high of 31,739.80 in early trade. The Nifty lost 129.05 points or 1.3% at the day's low of 9,783.75 in mid-afternoon trade, its lowest level since 22 August 2017. It fell 25.45 points or 0.25% at the day's high of 9,887.35 in early trade.
After opening lower on weak Asian stocks, key indices continued to extend intraday losses as the day's trade progressed with sharp drop in European stocks exacerbating losses.
The S&P BSE Mid-Cap index provisionally fell 0.85%. The S&P BSE Small-Cap index provisionally declined 1.05%. The losses in both the indices were lower than the Sensex's decline in percentage terms.
The broad market depicted weakness. There were more than two losers for every gainer on BSE. On the BSE, 1,717 shares fell and 841 shares rose. A total of 142 shares were unchanged.
Metal & mining stocks declined. Bhushan Steel (down 3.56%), Jindal Steel & Power (down 3.21%), Vedanta (down 0.68%), Tata Steel (down 1.07%), NMDC (down 0.94%), Hindalco Industries (down 2.19%), Steel Authority of India (down 1.22%), Hindustan Zinc (down 0.96%) and National Aluminium Company (down 2.15%) edged lower. JSW Steel rose 1.14%.
Capital goods stocks also dropped. BEML (down 3.75%), Havells India (down 1.22%), L&T (down 0.85%), Thermax (down 1.18%), and Siemens (down 1.39%) declined.
Bharat Heavy Electricals (Bhel) shed 1.33%. The company announced that it has successfully commissioned the first unit of 2x30 megawatts (MW) Tuirial Hydro Electric Project (HEP) in Mizoram. The announcement was made during market hours today, 29 August 2017.
HCL Infosystems gained 1.7% after the company's board of directors in its meeting held today, 29 August 2017 has considered and approved the recommendations of its Capital Raising Committee to go for a rights issue of shares to existing shareholders of the company as a mode of raising equity capital aggregating up to Rs 500 crore. The announcement was made during market hours today, 29 August 2017.
Reliance Infrastructure rose 2.86% on reports the company is in talks to sell its Mumbai electricity business for an enterprise value of Rs 10000-13000 crore. According to media reports, renewables company Greenko is in talks with Anil Ambani-led Reliance Infrastructure to acquire its Mumbai electricity business for an enterprise value of Rs 10000-13000 crore.
Overseas, European and Asian stocks dropped after North Korea fired a missile over northern Japan. North Korea fired a missile early today, 29 August 2017 that flew over Japan and landed in the Pacific waters off the northern region of Hokkaido, South Korea and Japan, in a sharp escalation of tensions on the Korean peninsula.
In economic news, consumer confidence in Germany, Europe's largest economy, is set to improve further in September, reaching its highest level in almost 16 years, market research group GfK's monthly survey showed. GfK's forward-looking consumer sentiment index is set to rise to 10.9 points in September, from 10.8 points in August, GfK said.
French consumer spending rebounded in July after a contraction in June as households in the eurozone's second-largest economy spent more on food and manufactured goods, statistics agency Insee said. Consumer spending rose 0.7% month-on-month and 2.1% year-on-year in July, Insee reported.
Trading in US index futures indicated that the Dow could fall 125 points at the opening bell today, 29 August 2017. US stocks closed on a mixed note yesterday, 28 August 2017, as investors tried to assess the flooding damage caused by Tropical Storm Harvey, powerful hurricane to strike Texas in more than 50 years when it came ashore last week.
In economic news, an early look at US trade patterns in July points to a wider deficit. The advanced trade gap in goods services are excluded widened by nearly 1.8% to $65.1 billion in July, the Commerce Department said. Both exports and imports declined, but exports dropped at a faster pace.
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