1. Sensex tumbles over 1000 points this week, posts worst weekly fall in 18 months; SBI nosedives

Sensex tumbles over 1000 points this week, posts worst weekly fall in 18 months; SBI nosedives

Indian stock market tumbled on Friday and set the week for the worst fall in over last 18 months as the ongoing cross-border tensions between the United States and North Korea turned the sentiments negative.

By: | Updated: August 11, 2017 5:36 PM
BSE Sensex lost around 1,060 points so far in this week trading.

Indian stock market tumbled on Friday and set the week for the worst fall in over last 18 months as the ongoing cross-border tensions between the United States and North Korea turned the sentiments negative. BSE Sensex lost around 1,060 points in this week trading. The biggest drag came from State Bank of India after the country’s largest lender posted weak earnings for the April-June quarter of FY 2018. The benchmark Sensex lost over 300 points to end at 31,213.59 points while the broader Nifty 50 fell 109 points to settle at 9,710.8 points.

Weakening global risk appetite has sparked a wide round of profit-taking. Both the benchmark indices ended nearly 3.5% down for the week, breaking the five-week winning streak. Indian equities today marked their worst week since mid-February 2016 as the 30-share barometer closed 1.01% at 31,213.59 points, its lowest close in over a month and the wider Nifty ended 1.11 percent lower at 9,710.8 points.

The shares of heavyweight companies such as Reliance Industries, SBI, L&T, Mahindra & Mahindra, Maruti Suzuki, HDFC, HDFC Bank, HUL, ITC, Tata Motors, ICICI Bank, Sun Pharma, ONGC, NTPC, TCS, Hero MotoCorp, Tata Steel, Bharti Airtel contributed to the major down surge, all ended in negative territory. Out of the 51 listed scrips on NSE, 36 ended in red with losses up to 6.62%.

The market participants were cautious after the Indian market watchdog SEBI imposed trading restrictions on suspected 331 shell companies. Shares of State Bank of India plunged over 5% to Rs 280.65 after it reported a sharp decline of 20% in the standalone net profit to Rs 2,005.53 crore versus Rs 2,520.96 crore a year ago in the same period. Bank’s asset quality deteriorated further, with gross non-performing assets (NPAs) rising to 9.97% as on 30 June 2017 as against 6.94% as at end-June 2016.

Sentiment suffered another jolt after the Economic Survey said achieving the high end of the 6.75-7.5% growth projected previously will be difficult due to an appreciation of the rupee, farm loan waivers and transitional challenges from implementing GST. Asian equity markets slipped further today after Wall Street closed sharply lower on Thursday after US President Donald Trump warned Pyongyang against attacking Guam or US allies.

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