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Market Wrap: J&K developments, trade war send Sensex tumbling 418 points

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.

BS Web Team  |  New Delhi 

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.

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.

Shares of Nestle India rallied 4 per cent intra-day to Rs 11,912 apiece, in an otherwise weak market, on the BSE on Monday after the company reported a good April-June quarter (Q2CY19) results. The fast moving consumer goods (FMCG) company also declared a dividend of Rs 203 per share, including a special dividend of Rs 180 per share.

The stock was trading close to its record high level of Rs 12,026 touched on July 1, 2019 on the BSE in the intra-day deal.

First Published: Mon, August 05 2019. 16:48 IST
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