Nifty drops 60.75 points as geopolitical tensions grip investors

Frederick Owens
May 18, 2018

The 30-share Sensex surged over 436 points in early trade and the NSE Nifty soared almost 128 points before making a U-turn.

The barometer Sensex of the BSE, which had opened at 35,483.62 points, was trading at 35,281.67 points (12.30 p.m.) - lower by 106.21 points or 0.30 per cent - from the previous day's close at 35,387.88 points. The NSE 50-share Nifty also lost 58 points, or 0.54 per cent, to 10,682, after shuttling between 10,777 and 10,664.

Rising global oil prices and the uncertainty over formation of the government in Karnataka played a vital role to drag the markets further. "However, interventions from RBI may curb steep fall in rupee and are likely to give support to the market", said Vinod Nair, Head of Research, Geojit Financial Services.

In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 699.22 crore, while the domestic institutional investors bought stocks worth Rs 229.06 crore.

After easing for three months, India's retail inflation shot up to 4.58 per cent in April, which may turn the Reserve Bank of India more hawkish. Banking stocks were battered after scam-scarred PNB posted a record loss for the March quarter amid the Government tightening the screws on some senior public sector bankers.

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However, HUL, Kotak Bank, IndusBank, ITC, Hero MotoCorp, TCS and Yes Bank ended with gains. The FMCG sector index was the worst performer falling 1.28%.

Besides, weak Chinese economic data and a lack of progress on trade tariff issues between the USA and China further hit investor sentiments.

Japan's Nikkei was up 0.2 per cent. China's Shanghai Composite index too rose 0.46 per cent.

In Europe, Frankfurt's DAX fell 0.12 per cent, while Paris CAC shed 0.28 per cent in early deals.

This is published unedited from the PTI feed.

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