Falling for the third straight session, the BSE benchmark Sensex today plunged by 260 points to close at nearly three-week low of 25,329.14 on selling pressure sparked by escalating geopolitical tensions after US President Barack Obama authorised air strikes in Iraq.
The Indian rupee slumping to five-month low of 61.74 (intra-day) against the US dollar and rising global crude prices too impacted the trading sentiment. Updates: Indian rupee vs US dollar, others
After opening lower at 25,406.87, the 30-share Sensex dipped to 25,232.82 at one point before ending the day at 25,329.14, down 259.87 points or 1.02 per cent, from its previous close.
The BSE barometer had lost 319 points in the previous two sessions.
“Global markets closed in the negative for the week on the back of geopolitical tensions. The US authorizing targeted airstrikes on Iraq was the latest trigger. There was growing unease over the crisis in Ukraine. Indian markets were not insulated from the sell-off in global markets as it signed off the week in the negative zone. Capital goods, metals and realty stocks sold off. Going ahead, geopolitical tensions would continue to be in limelight, we believe. Investors are advised to utilize the opportunity to buy into quality stocks with strong management pedigree,” says Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities.
The 50-share NSE Nifty dipped below the 7,600 mark by plunging 80.70 points, or 1.06 per cent, to end at 7,568.55.
Brokers said sentiments turned weak on foreign capital outflows that took weak cues from on worsening geopolitical tensions and the rupee slumping to five-month low amidst rising crude oil prices.
Globally, major stocks markets in Asia fell in the range of 1-2 per cent, while most of the European markets were down over 1 per cent in early trade as global sell-off spread.
Extending downtrend for the third consecutive day, Bhushan Steel shares slumped 10 per cent to hit its lowest trading permissible limit for the day of Rs 219.35 on the BSE after the CBI arrested Neeraj Singal, Vice Chairman and Managing Director of the company, in connection with Rs 50 lakh bribery scandal involving Syndicate Bank.
* BSE index falls 1.02 pct; NSE ends 1.06 pct lower
* NSE index closes below 50-DMA for the first time since Feb
* Factory output, inflation data