Equity markets came under heavy selling pressure on Tuesday on fears that a spike in crude prices following attacks on Saudi oil facilities could hurt the economy further. India’s current account and fiscal deficit could take a hit if oil prices continue to rise after the attack, RBI Governor Shaktikanta Das had said on Monday.
The S&P BSE Sensex plunged 642 points or 1.73 per cent to end at 36,481.09, with Hero MotoCorp (down over 6 per cent) being the worst performer and HUL (up 1 per cent) the bigggest gainer. Out of 30 constituents, 27 ended in the red and just 3 closed in the positive territory.
During the session, the 30-share index hit a high and low of 37,169.56 and 36,419.09, respectively. HDFC, HDFC Bank, ICICI Bank, Axis Bank, Reliance Industries (RIL), and SBI emerged as the top contributors to the index's fall. On the flip side, Infosys, HUL, and Asian Paints gave the much-needed support.
On NSE, the frontline index Nifty50 lost 186 points or 1,69 per cent to end at 10,818. Nifty Bank bled 723 points or 2.60 per cent to end at 27,132.
Sectorally, all the indices on the NSE ended in the red. Auto stocks slipped the most, followed by realty and PSU bank scrips. The Nifty Auto index lost around 4 per cent to settle at 7,020.75 levels.
Volatility index India VIX zoomed 7 per cent to end at 15.99.
In the broader market, the S&P BSE MidCap index slipped 241 points, or 1.77 per cent, to 13,387 levels, and the S&P BSE SmallCap index lost 241 points or 1.84 per cent to close at 12,855.
After pouring $45 billion into India’s stock market over the past six years on hopes that Modi would unleash the country’s economic potential, international money managers are now unwinding those wagers at the fastest pace on record. They’ve sold $4.5 billion of Indian shares since June, on course for the biggest quarterly exodus since at least 1999.
Shares of CG Power and Industrial Solutions hit an upper circuit band of 5 per cent at Rs 15.69 apiece on the BSE in the early morning deals on Tuesday, a day after private equity giant KKR India picked up nearly 10 per cent stake in the company for over Rs 89 crore.
As per the latest bulk deal data on the NSE, KKR India Debt Opportunities Fund II and KKR India Financial Services Ltd acquired a total number of over 6.26 crore shares or around 10 per cent stake in CG Power.