Markets tank on tariff jitters, foreign fund exodus; Sensex dives below 80k
Mumbai, Aug 8 (PTI): Equity benchmark index Sensex tumbled nearly 1 per cent to slip below the 80,000 level on Friday as growing concerns over the impact of the additional US tariff and unabated foreign fund outflows unnerved investors.
Deep losses in market heavyweights Reliance Industries, HDFC Bank and Bharti Airtel also added pressure on equities, traders said.
The 30-share BSE Sensex tanked 765.47 points or 0.95 per cent to settle at 79,857.79. During the day, it tumbled 847.42 points or 1.05 per cent to 79,775.84.
As many as 2,507 stocks declined while 1,521 advanced and 145 remained unchanged on the BSE.
The 50-share NSE Nifty dropped 232.85 points or 0.95 per cent to 24,363.30.
Extending losing streak for the sixth consecutive week, the BSE benchmark dropped 742.12 points or 0.92 per cent, and the Nifty declined 202.05 points or 0.82 per cent.
"The Indian equity market exhibited downward movement, closing at a three-month low amid growing concerns over the impact of US tariffs on Indian exports.
"FIIs remained net sellers, intensifying the pressure on domestic indices. The pessimism was broad-based, with realty and metals bearing the biggest brunt," Vinod Nair, Head of Research, Geojit Investments Limited, said.
From the Sensex firms, Bharti Airtel, Tata Motors, Mahindra & Mahindra, Kotak Mahindra Bank, Axis Bank and Reliance Industries were among the laggards.
"Selling intensified, with the Sensex ending below the psychological 80k mark, as analysts believe that once the stiff tariff penalty on Indian goods by the Trump administration comes into effect, India's growth could be hit going ahead," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
However, NTPC, Titan, Trent, ITC and Bajaj Finserv managed to be in green territory.
The BSE midcap gauge tanked 1.56 per cent, and the smallcap index dropped 1.03 per cent.
All sectoral indices ended lower, realty dropped 2.09 per cent, telecommunication (1.83 per cent), metal (1.82 per cent), consumer durables (1.68 per cent), capital goods (1.62 per cent) and commodities (1.55 per cent).
"Indian equity benchmarks ended sharply lower on Friday, surrendering the previous session’s gains as renewed tariff concerns and persistent foreign fund outflows weighed on sentiment. Market mood soured after US President Donald Trump doubled tariffs on Indian goods to 50 per cent, stating that no trade talks would take place until the dispute was resolved," Gaurav Garg, Analyst, Lemonn Markets Desk, said.
Adding to the pressure, foreign institutional investors sold equities worth Rs 4,997.19 crore on Thursday, while weak global cues from Asian markets and a mixed Wall Street close kept traders cautious, he added.
US President Donald Trump has ruled out the possibility of trade negotiations with India until the issue of tariffs is resolved.
"No, not until we get it resolved,” Trump said in the Oval Office on Thursday in response to a question on whether he expects increased trade negotiations with India since he has announced 50 per cent tariffs on the country.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,997.19 crore on Thursday, according to exchange data. Domestic Institutional Investors (DII), however, bought stocks worth Rs 10,864.04 crore in the previous trade.
The initial 25 per cent tariffs announced by the US on Indian imports came into effect Thursday.
In Asian markets, Japan's Nikkei 225 index settled in positive territory, while South Korea's Kospi, Shanghai's SSE Composite index and Hong Kong's Hang Seng ended lower.
European markets were trading mostly in green during mid-session deals.
The US markets ended on a mixed note on Thursday.
Global oil benchmark Brent crude climbed 0.59 per cent to USD 66.82 a barrel.
On Thursday, the Sensex edged higher by 79.27 points or 0.10 per cent to settle at 80,623.26. The Nifty went up by 21.95 points or 0.09 per cent to 24,596.15.
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US service member missing after Iran shot down fighter jet rescued
Washington (AP): A US service member who had been missing since Iran shot down a fighter jet has been rescued, President Donald Trump wrote in a social media post early Sunday.
The crew member had been missing since Friday, when Iran downed a US F-15E Strike Eagle. A second crew member was rescued earlier.
Trump wrote that the aviator is injured but “will be just fine,” adding that he took refuge “on the treacherous mountains of Iran.”
Trump added that the rescue involved “dozens of aircraft” and that US had been monitoring his location “24 hours a day, and diligently planning for his rescue.”
The war began with joint US-Israel strikes on February 28 and has killed thousands, shaken global markets, cut off key shipping routes and spiked fuel prices. Both sides have threatened, and hit, civilian targets, bringing warnings of possible war crimes.
The fighter jet was the first US aircraft to have crashed in Iranian territory since the conflict in late February.
Trump said last week that the US had “decimated” Iran and would finish the war “very fast.”
Two days later, Iran shot down two US military planes, showing the ongoing perils of the bombing campaign and the ability of a degraded Iranian military to continue to hit back.
The other jet to go down was a US A-10 attack aircraft. Neither the status of the crew nor exactly where it crashed was immediately known.
A frantic US search-and-rescue operation unfolded after the crash of the F-15E jet on Friday, focusing on a mountainous region in Iran's southwestern province of Kohgiluyeh and Boyer-Ahmad.
Iran also promised a reward for anyone who turned in the “enemy pilot.” Iran's joint military command on Saturday said that it also struck two US Black Hawk helicopters Friday, but The Associated Press couldn't independently verify that.
