Sensex sinks 642 points as crude oil woes persist, Nifty falls 186 points; Hero MotoCorp, Tata Motors among top losers
Market benchmark BSE Sensex on Tuesday plummeted 642 points to end at a two-week closing low as investors weighed India's fiscal worries due to soaring crude prices in the wake of growing geopolitical tensions in the Middle East
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After nosediving 704 points, the 30-share index ended 642.22 points, or 1.73 percent, lower at 36,481.09
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The broader NSE Nifty too settled 185.90 points, or 1.69 percent, down at 10,817.60
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With this fall, the Nifty index has erased all its gains made in 2019
Market benchmark BSE Sensex on Tuesday plummeted 642 points to end at a two-week closing low as investors weighed India's fiscal worries due to soaring crude prices in the wake of growing geopolitical tensions in the Middle East.
After nosediving 704 points, the 30-share index ended 642.22 points, or 1.73 percent, lower at 36,481.09. The broader NSE Nifty too settled 185.90 points, or 1.69 percent, down at 10,817.60. With this fall, the Nifty index has erased all its gains made in 2019.
Also, Nifty Bank turns negative for 2019, all its constituents ended in the red; fell 723 points, recorded biggest single-day fall in 2 months.
#MarketAtClose | Market sees a major sell-off, #Nifty erases 2019 gains; #Sensex slips 642 points to end at a 2-week closing low pic.twitter.com/ojhLC2EFcP
— CNBC-TV18 (@CNBCTV18Live) September 17, 2019
On the Sensex chart, losses were mainly driven by Hero MotoCorp, Tata Motors, Axis Bank, Tata Steel, Maruti and SBI -- falling as much as 6.19 percent.
Of the 30 scrips of the BSE gauge, HUL, Asian Paints and Infosys were the three gainers.
Investors were spooked by geopolitical uncertainties over the Saudi oil turmoil amid reports that higher oil prices were likely to severely hit economic conditions in India, which imports more than 70 percent of its oil needs, experts said.
Representative image. Reuters
The attack on the world's largest oil processing facility in Saudi Arabia has led to a record surge in global crude prices.
After soaring as much as 20 percent to $71.95 per barrel on Monday, Brent crude futures corrected slightly to trade at $67.97 per barrel on Tuesday.
Higher import cost of oil could sharply worsen current account position, compress profit margins and raise inflation, a Nomura report said.
Tracking the movement in oil prices, the rupee further depreciated by 37 paise (intra-day) to trade at 71.97 per US dollar.
Market participants were also on edge awaiting cues from the upcoming trade talks between China and the US as well as a much-anticipated policy meeting of the Federal Reserve, scheduled to begin later in the day.
Elsewhere in Asia, Shanghai Composite Index and Hang Seng ended significantly lower, while Nikkei and Kospi settled in the green.
Stock exchanges in Europe were trading on a mixed note in their respective early sessions.
(With inputs from agencies)