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Market tumbles on North Korea threat, geopolitical tensions

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Capital Market
Last Updated : Sep 25 2017 | 9:13 AM IST

Market registered strong losses in the last trading session of the week amid geopolitical tensions. The barometer index, the S&P BSE Sensex lost 464.12 points or 1.43% at 31,905.92, as per the provisional closing data. The Nifty 50 index fell 159.65 points or 1.58% at 9,962.25, as per the provisional closing data. The Sensex slipped below the 32,000 mark while the Nifty skidded below the crucial 10,000 level. All the nineteen sectoral indices on the BSE finished the session in red.

Market sentiment took a hit after North Korea's threat that it could consider testing a nuclear weapon in the Pacific. North Korea's foreign minister reportedly warned yesterday, 21 September 2017 that Pyongyang could test a hydrogen bomb over the Pacific Ocean in response to US President Donald Trump's threats of military action.

Among other indices, the S&P BSE Mid-Cap index provisionally fell 2.71%. The S&P BSE Small-Cap index provisionally lost 2.93%. The losses in both the indices were higher than the Sensex's slide in percentage terms.

Broad market depicted weakness. There were nearly four losers for every gainer on BSE. 2,088 shares declined and 527 shares advanced. A total of 146 shares were unchanged.

The total turnover on BSE amounted to Rs 3915.60 crore, lower than turnover of Rs 4221.54 crore registered during the previous trading session.

Metal and mining stocks slumped amid fall in global metal prices after S&P Global Ratings cut China's sovereign credit rating for the first time since 1999, citing the risks from soaring debt, and revised its outlook to stable from negative.

National Aluminium Company (down 7.74%), Jindal Steel & Power (down 7.48%), NMDC (down 5.4%), Steel Authority of India (down 5.32%), Tata Steel (down 4.7%), Hindalco Industries (down 4.53%), Vedanta (down 4.08%), Hindustan Zinc (down 3.57%), Hindustan Copper (down 2.97%) and JSW Steel (down 2.87%) declined. China is the world's largest consumer of steel, copper and aluminum.

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L&T (down 3.48%), Reliance Industries (down 3.13%), Hero MotoCorp (down 2.76%), ICICI Bank (down 2.63%) and State Bank of India (down 2.27%) declined from the 30-share Sensex pack.

The India Meteorological Department (IMD) in its weekly weather report said that for the country as a whole, cumulative rainfall during this year's monsoon upto 20 September has been 5% below the normal rainfall. The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.

Overseas, European stocks were mixed and most Asian stocks edged lower after North Korea's threat that it could consider testing a nuclear weapon in the Pacific.

European Central Bank (ECB) President Mario Draghi said yesterday, 21 September 2017 that monetary policy is not the right instrument to address financial imbalances in the euro zone and macroprudential tools must be used to tackle local issues.

US stocks declined yesterday, 21 September 2017 as profit booking emerged after recent winning streak.

In the economic news, the US initial claims for state unemployment benefits declined 23,000 to a seasonally adjusted 259,000 for the week ended 16 September, the Labor Department said yesterday, 21 September 2017.

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First Published: Sep 22 2017 | 3:34 PM IST

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