Stock markets tumble on weak global cues, geo-political concerns

Mumbai: In spite of recovery on the last day of the week, both the indices, S&P BSE benchmark Sensex and NSE Nifty, tumbled by 802 points and 210 points due to heavy selling pressure after India conducted 'surgical strikes' on terror launch pads across the Line of Control.

The market mirrored the downswing in global equities which was impacted due to US Presidential election debate. Stocks staged a mild recovery on the last day as the Sensex mopped up modest gains amid creation of fresh bets with the beginning of the October series of derivative contracts.

According to HSBC, the global financial services major, inflation is likely to remain below the Reserve Bank's early 2017 target of 5 percent for the next 12 months, opening up space for monetary easing.

"With US jobs data and RBI monetary policy scheduled for next week, investor focus is expected to be back on macros soon," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.

The index tumbled 465 points on Thursday after India carried out "surgical strikes" on Wednesday night on terror launch pads across the Line of Control (LoC).

The S&P BSE benchmark Sensex resumed lower at 28,630.92 and dropped further to 27,716.78 before ending the week at 27,865.96, disclosing a heavy loss of 802.26 points or 2.80 percent.

The NSE Nifty also dropped by 210.40 points or 2.38 percent to end the week at 8,621.15.

Shares of Power, Realty, Capital Goods, FMCG and Banking sectors fell sharply due to heavy profit-booking.

Meanwhile, foreign funds bought shares worth a net of

Rs 4,019.20 crore during the week as per Sebi's record including the provisional figure of September 30.

Asian shares tumbled on lingering concerns about future of German banking giant Deutsche Bank over its financial health.

Investors are also anxiously waiting for the upcoming monetary policy review on October 4, the first to be held under the new RBI Governor Urjit Patel.

In the broader market, the BSE Mid-Cap index lost 165.29 points or 1.24 percent to settle at 13,166.68. The BSE Small- Cap index fell 178.10 points or 1.37 percent to settle at 12,780.80. The fall in both these indices was lower than the Sensex's decline in percentage terms.

Among the S&P, BSE sector and industry indices, Power dropped 3.83 percent, followed by Realty 3.73 percent, Capital Goods 3.55 percent, FMCG 3.26 percent, Bankex 3.11 percent, Healthcare 2.60 percent, Auto 1.81 percent, Consumer Durables 1.56 percent, Metal 0.75 percent, Tech 0.74 percent, IT 0.68 percent and Oil & Gas 0.49 percent.

In the 30-share Sensex pack, 27 stocks fell, while remaining 3 gained during the week.

Major losers included, Bank stocks dropped ICICI Bank (7.17 percent), Adani Ports (6.72 percent), NTPC (5.38 percent), Cipla (4.89 percent), ITC (4.85 percent), Sun Pharma (4.79 percent), HUL (4.64 percent), L&T (4.35 percent), Bharti Airtel (4.09 percent) and Tata Motors (3.36 percent).

However, TCS rose by 1.25 percent followed by Tata Steel 0.67 percent and Power Grid 0.63 percent.

The total turnover during the week on the BSE fell to Rs 18,280.84 crore from last weekend's level of Rs 19,360.53 crore while NSE rose to Rs 1,27,819.04 crore from Rs 1,03,707.49 crore.