Sensex dives 287 points over global concerns, foreign fund outflows

Marco Green
September 25, 2017

Key Indian equity indices descended sharply during the mid-afternoon trade session on Monday, with the BSE Sensex plunging over 350 points and the NSE Nifty50 over 100 points. However, there is no further blow from North Korea but worries still remain amid the market participants.North Korean leader Kim Jong Un retaliated by calling Trump "deranged" and saying he'll "pay dearly" for his threats, while Kim's foreign minister reportedly said the country might plan to test a hydrogen bomb in the Pacific Ocean.

The Nifty was down 0.91 percent or 91 points at 9,873.45 as of 12.21 pm, while the Sensex was 0.89 percent or 285 points lower at 31,6537.81. In intra day trade, Sensex had lost 447.88 points to hit the day low of 31,474.56.

Mumbai: The market bloodbath continued as the benchmark Sensex plunged 406.10 points or 1.27 percent to 31,516.34, on banks, metals, auto and pharma stocks.

The BSE market breadth was bearish - with 2,031 declines and 510 advances. The geopolitical tensions in North Korea and continuous FII (foreign institutional investors) outflows led to nervous moments ahead of derivatives expiry due on Thursday.

"The benchmark indices extended losses on Monday with the Nifty50 breaching its crucial 9,850 mark as investors turned jittery as they expect government to tinker with its fiscal deficit target for FY18 by announcing an economic stimulus to revive the economy", Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

On Friday, the benchmark indices witnessed the steepest fall since November 2016, on the back of escalating geo-political tensions between North Korea and the U.S., a weak rupee and heavy selling pressure in capital goods, metal and banking stocks. This comes after it saw a major downturn on Friday as Sensex slipped nearly 450 points.

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