Share Market Update: Domestic benchmark indices BSE Sensex and NSE Nifty on Tuesday suffered heavy losses on the backdrop of heavy selling pressure fearing a spike in crude oil prices following attacks on Saudi oil facilities hurting the economy further. According to market reports, the S&P BSE Sensex index slumped as much as 704 points to 36,419.09 at the day's weakest level, and the broader NSE Nifty 50 benchmark dropped as much as 207 points to an intraday low of 10,796.50.
It is also worth noting that with today's fall, the 50-share National Stock Exchange (NSE) benchmark index turned negative for 2019. HDFC, HDFC Bank, ICICI Bank, Axis Bank, Reliance Industries (RIL), and SBI emerged as the top contributors to the index's fall, while only Infosys, HUL and Asian Paints gave the much-needed support.
Even the Indian rupee also extended losses today, falling to 71.97 against the US dollar. 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.
Stocks of banking, auto, metal and IT led the traded in red with selling pressure being visible across sectors with all the 11 sector gauges compiled by the NSE ending lower in trade. Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday said that India’s current account and fiscal deficit could take a hit if oil prices continue to rise after the attack on Saudi oil facilities.
Oil prices slipped on Tuesday, but investors were wary due to the threat of a military response to the attacks. If crude prices remain at elevated levels, emerging markets such as India — the world’s third-biggest importer of oil — are likely to be under pressure, a report by news agency Reuters stated.
“Investors are panicking due to fears that crude may rise further,” said Yogesh Nagaonkar, founder and chief executive of Rowan Capital Advisors in Mumbai told Reuters." Brent crude, the international benchmark, fell 0.96 per cent to $68.39 per barrel. On Monday, it surged 14.6 per cent for its biggest one-day percentage gain since at least 1988.
“The underlying tone of the market is already bearish due to slowdown worries and lack of action from the part of the government to counter this and the crude surge is worsening the situation,” Nagaonkar added.
Two-wheeler maker Hero MotoCorp Ltd suffered its worst session in nearly 14 months. The stock fell 6.2 per cent and was the top loser on both indexes, while Tata Motors Ltd declined 5.1 per cent. Meanwhile, private-sector lender Axis Bank Ltd fell to its lowest closing level since Jan. 7.
Share Market Update: Sensex Tanks Over 700 Pts Amid Rise In Oil Prices, Nifty Turns Red For 2019
ABP News Bureau
Updated at:
17 Sep 2019 04:44 PM (IST)
Domestic benchmark indices BSE Sensex and NSE Nifty on Tuesday suffered heavy losses on the backdrop of heavy selling pressure fearing a spike in crude oil prices following attacks on Saudi oil facilities hurting the economy further.
Indian rupee also extended losses today, falling to 71.97 against the US dollar. (File Photo/ Getty)
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