Published: Sat, September 23, 2017
Economy | By Melissa Porter

Sensex falls over 300 points; Rupee slides to almost six-month low

Sensex falls over 300 points; Rupee slides to almost six-month low

At 9.40 a.m, the Sensex was trading down 243.40 points or 0.75% at 32,126.64 with 26 components falling.

The S&P BSE Sensex fell 1.4 percent at 31,922 while the broader NSE Nifty lost 1.6 percent to 9,964.

The BSE Sensex dropped over 400 points in afternoon trade Friday due to across the board sell-off led by realty, bank, financials and capital goods stocks after renewed threat of North Korea conducting another hydrogen bomb test.

The geopolitical tensions edged up after US President Donald Trump authorized stiffer new sanctions in response to North Korea's nuclear weapons advances, drawing a furious response from Pyongyang, Associated Press reported.

Asian markets got their first chance to react to Standard & Poor's announcement late Thursday that it was downgrading China's credit rating, citing rising debt levels. "We believe that the market will stabilise as the imminent benefit to the economy is understood soon".

The BSE 30-share barometer slumped 231.79 points, or 0.72 per cent, to 32,138.25. Similarly, the losers were Hindustan Unilever, Reliance, Tata Steel and ICICI Bank.

Investor wealth saw an erosion of Rs 2.68 lakh crore on Friday dragged down by massive selling in the stock market where the BSE benchmark index tumbled 448 points.

The Indian government is considering a plan to loosen the fiscal deficit target so that it could spend an additional Rs 50,000 crore ($7.7 billion) in the financial year ending in March 2018.

Dealers said early losses in domestic equity markets and unabated foreign fund outflows weighed on the rupee.

Most Asian stock markets fell Friday as investors turned cautious following new USA sanctions targeting North Korea and credit rating downgrades for China and Hong Kong. These factors led to a global sell-off as leading Asian indices including Japan's Nikkei, Hong Kong's Hang Seng and Seoul's Kospi. and the USA markets overnight, ended in the red. The indices had the biggest lost since November 21, 2016.

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