Indian stock markets closed extremely lower after weak opening on Tuesday with the NIfty 50 losing over 100 points to end below 9,800 level.
Indian stock markets closed extremely lower after weak opening on Tuesday with the Nifty 50 losing over 100 points to end below 9,800 level. The benchmark Sensex too lost 390 points in the intraday trade today to the day’s low of 31,360.81 points. The sell-off in the shares of heavyweight companies such as HDFC, Reliance Industries, HDFC Bank further contributed the down surge of the index. Today 47 out of 51 scrips of NSE Nifty ended in red and all eleven sectoral indices too settled down with losses up to 1.23%. The benchmark Sensex slipped 1.14% at 31,388.39 points while the broader Nifty declined 1.18% to 9,796.05 points.
The NSE Nifty which opened weak in morning tumbled further on Tuesday amid weak Asian cues after North Korea launched a missile over Japan. Geopolitical tensions escalated after North Korea fired a ballistic missile over northern Japan dragged down the indices.
Shares of Bank of Baroda (down 2.98%), NTPC (down 2.91%), Hindalco (down 2.65%), Tata Power (down 2.35%), Sun Pharma (down 2.39%), HDFC (down 2.26%), Coal India (down 2.22%), Reliance Industries (down 2.2%), ONGC (down 2.05%), Tata Motors DVR (down 2.02%) and Yes Bank (down 2.02%) were the major losers on the wider indicator Nifty 50. The shares of heavyweight companies HDFC, Reliance Industries, HDFC Bank, Indian Oil Corporation, Infosys, Yes Bank, Bharti Infratel, Axis Bank, L&T, Kotak Mahindra Bank and Eicher Motors contributed the most to the decline in the index. Collectively these 11 stocks alone washed off about 70 points out of 116 points drop in the Nifty.
ACC, Bank of Baroda, Tata Power and Tata Motors DVR shares fell up to 3% on Tuesday as these stocks will be removed from the broader Indian benchmark index Nifty 50 with effect from 29 September. In a recent reshuffling, India Index Services and Products Ltd (IISL) which is an arm of the National Stock Exchange (NSE) announced this yesterday as part of its periodic review. These four firms would be replaced by Bajaj Finance, Hindustan Petroleum Corporation Ltd, and UPL Ltd.
Shares of country’s biggest power producer NTPC plunged over 3% today after the government announced that it will sell a 5% stake in the NTPC Ltd over two days to Wednesday. The share sale through an offer for sale (OFS) will happen over two days beginning today.