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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Jai Bhim: Slogan that energised Dalits was first given at this central Maharashtra village
Chhatrapati Sambhajinagar (PTI): 'Jai Bhim': These two words have come to symbolise the awakening and empowerment of the Dalit community in independent India, but not many people know how it originated.
The slogan, which also encapsulates the immense reverence in which Dr Bhimrao Ramji Ambedkar is held, was first raised at the Makranpur Parishad, a conference organised at Makranpur village in Kannad teshil of today's Chhatrapati Sambhajinagar district in Maharashtra.
Ambedkar, the chief architect of India's Constitution, died on December 6, 1956.
Bhausaheb More, the first president of the Scheduled Castes Federation of Marathwada, organised the first Makranpur Parishad on December 30, 1938.
Dr Ambedkar spoke at the conference and asked the people not to support the princely state of Hyderabad under which much of central Maharashtra then fell, said Assistant Commissioner of Police Pravin More, Bhausaheb's son.
"When Bhausaheb stood up to speak, he said every community has its own deity and they greet each other using the name of that deity. Dr Ambedkar showed us the path of progress, and he is like God to us. So henceforth, we should say 'Jai Bhim' while meeting each other. The people responded enthusiastically. A resolution accepting 'Jai Bhim' as the community's slogan was also passed," More told PTI.
"My father came in contact with Dr Babasaheb Ambedkar in his early years. Bhausaheb was aware of the atrocities the Nizam state committed on Dalits. He told Ambedkar about these atrocities, including the pressure to convert. Dr Ambedkar was strongly against these atrocities, and he decided to attend the 1938 conference," he said.
As Ambedkar was against the princely states, he was banned from giving speeches in the Hyderabad state but was allowed to travel through its territories. The Shivna river formed the border between Hyderabad and British India. Makranpur was chosen as the venue for the first conference because it was on the banks of Shivna but lay in the British territory, ACP More said.
The stage made of bricks, from where Dr Ambedkar addressed the conference, still stands. The conference is organised on December 30 every year to carry forward Ambedkar's thought, and the tradition was not discontinued even in 1972 when Maharashtra experienced one of the worst droughts in it history.
"My grandmother pledged her jewellery for the conference expenses. People from Khandesh, Vidarbha and Marathwada attended it. Despite a ban imposed by the Nizam's police, Ambedkar's followers crossed the river to attend the event," said ACP More.
"This is the 87th year of Makranpur Parishad. We have deliberately retained the venue as it helps spread Ambedkar's thought in rural areas," he added.
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