Sensex at five-week low, Nifty settles at 9,710, down 350 pts for the week
The markets settled at their five-week lows as PSU banks and metal stocks tanked, while escalating tensions between the United States and North Korea continued to drive investors away from risk assets.
The Nifty PSU Bank index dipped nearly 5% after Oriental Bank, Union Bank of India and State Bank of India fell 5% each post disappointing earnings for the June quarter. Meanwhile, volatility index India VIX hit its highest in six months, suggesting market participants expect major volatility on the Nifty over the next thirty days.
Benchmark indices ended the session and the week on a negative note, with indices seeing big cuts in the day’s trade.
The Sensex closed down 317.74 points at 31213.59, while the Nifty ended lower by 109.45 points at 9710.80. The market breadth was negative as 1,003 shares advanced against a decline of 1,525 shares, while 135 shares were unchanged.
Dr Reddy’s Labs, Tata Motors DVR and Aurobindo Pharma gained the most on both indices, while State Bank of India, M&M, Hindalco and Vedanta were the top losers.
Market breadth depicted weakness. There were more than two losers against every gainer on BSE. 1,530 shares fell and 1000 shares rose. A total of 129 shares were unchanged.
The BSE Midcap (down 0.2%) was down marginally, while the BSE Smallcap settled nearly unchanged.