Sensex plunges 654 pts on geopolitical worries

Tribune News Service

New Delhi, March 26

Potential worries over geopolitical tension in the Middle-East and the last day of contracts’ expiry hurt the BSE Sensex today, which tanked by more than 650 points.

The Sensex fell 654 points, its biggest daily fall in nearly three months, to close at 27,457.58 points. Across-the-board selling on the last day of monthly derivative contracts, sluggish global cues and surge in oil prices also pulled down markets for the seventh straight day.

The NSE Nifty slipped 189 points, or 2.21%, to end at 8,342.15, its weakest level in around 10 weeks.

Dipen Shah, Head of Private Client Group Research, Kotak Securities, said the F&O expiry and potential geopolitical issues in the Middle-East are likely to have impacted markets today.

Shah added that going ahead, there are no immediate triggers for the markets on the domestic front and hence, markets may continue to be dictated by global factors.

Quarterly results are also expected to be subdued. Further action on the fiscal or monetary front, if any, can give some upside to the market, he added.

In currency markets, the Indian rupee fell to 62.7 levels against the US dollar on capital outflow worries. The market is concerned over the evolving situation in Yemen and rise in crude oil prices.

Domestic participants were seen offloading their long positions in Futures and Options (F&O) segment instead of carrying them forward to the next April series.

In the cash market, selling was broad-based as 11 out of 12 sectoral indices closed lower. Only capital goods index escaped the bloodbath. On the BSE platform, two stocks fell for every one that rose as 1,822 scrips ended in the red while 979 advanced.

The benchmark S&P BSE 30-share barometer resumed below 28,000-mark and gradually moved down to a low of 27,384 points before concluding at 27,457 points, a steep fall of 654.25 points or 2.33%. Today’s fall was the biggest since January 6, 2015, when it had plunged by 854.86 points or 3.07%.