Key indices slumped as reports suggesting that Indian Army today, 27 September 2017, carried out a surgical strike along the Myanmar border and targeted Naga insurgent camps dampened sentiment. The barometer index, the S&P BSE Sensex, tumbled 439.95 points or 1.39% at 31,159.81, as per the provisional closing data. The Nifty 50 index dropped 134.65 points or 1.36% at 9,736.85, as per the provisional closing data.
The Sensex hit lowest level in almost three months. The Nifty hit almost seven-week low. Indices dropped for the seventh straight session. Federal Reserve Chairwoman Janet Yellen hinting at possible hike in US interest rates increased worries of pull out of money from risky assets in emerging markets like India.
Meanwhile, a team of Indian Para Commandos carried out the attack at 4:45 IST and caused heavy damage to NSCN-K insurgents close to Langkhu village near the Indo-Myanmar border.
The strike comes on the anniversary of India's surgical strike on terror camps in Pakistan-occupied Kashmir last year. The NSCN-K, abrogated the ceasefire it signed in 2001 with the Indian government, on 27 March 2015, just a month before the truce was up for renewal. Subsequently, its chief SS Khaplang's rebels went on a killing spree, attacking Indian soldiers in Nagaland and Manipur.
The Sensex gained 197.70 points or 0.62% at the day's high of 31,797.46 in early trade, its highest level since 25 September 2017. The index dropped 498.96 points or 1.57% at the day's low of 31,100.80 in late trade, its lowest level since 3 July 2017. The Nifty gained 49.55 points or 0.5% at the day's high of 9,921.05 in early trade, its highest level since 25 September 2017. The index fell 157.10 points or 1.59% at the day's low of 9,714.40 in late trade, its lowest level since 11 August 2017.
The market opened with decent gains but soon slipped into the red in morning trade. Indices extended losses and hit fresh intraday low in mid-morning trade. Stocks languished in the red in early afternoon trade. Indices further extended losses later during the session.
The S&P BSE Mid-Cap index provisionally fell 1.99%. The S&P BSE Small-Cap index provisionally shed 2.1%. The decline in both the indices was higher than the Sensex's fall in percentage terms.
The broad market depicted weakness. There were more than three losers for every gainer on BSE. 1,951 shares fell and 589 shares rose. A total of 138 shares were unchanged.
Adani Ports & Special Economic Zone (down 4.52%), Sun Pharmaceutical Industries (down 3.03%) and State Bank of India (down 2.99%) dropped from the Sensex pack.
Realty stocks tumbled. Sobha (down 0.14%), Indiabulls Real Estate (down 2.66%), Unitech (down 4.49%), Oberoi Realty (down 1.23%), DLF (down 5.66%), and Omaxe (down 0.69%) edged lower.
Overseas, European stocks edged higher on growing expectations of another rate hike in the United States before the year-end. Asian stocks were mixed amid positive economic data in China and as investors hoped for progress on major tax reform in the United States. Annual profits at China's industrial companies rose 24% in August, accelerating from the previous month in an indication economic growth remains in good heart even as signs emerge of fading momentum following a robust first half.
US stock-market indices relinquished earlier gains to close little changed yesterday, 26 September 2017, with the Dow Industrials Average extending a losing streak to a fourth session. Investors appeared to shrug off comments from Federal Reserve Chairwoman Janet Yellen, who cautioned against moving too slowly on interest rates. Yellen said there is a risk that the labor market could become overheated, causing an inflation problem down the road.
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