Stock markets halt 6-day rally; Sensex, Nifty dive nearly 1 pc as HDFC Bank, Reliance drag
Mumbai, Aug 22 (PTI): Equity benchmark indices Sensex and Nifty fell sharply by nearly 1 per cent on Friday, snapping their six-day winning streak, as investors turned cautious ahead of US Fed Chair Jerome Powell's Jackson Hole address amid growing global trade uncertainties triggered by Trump tariffs.
Intense selling in market heavyweights HDFC Bank and Reliance Industries also dampened risk appetite, traders said.
The 30-share BSE Sensex tumbled 693.86 points or 0.85 per cent to settle at 81,306.85. During the day, it plunged 708.94 points or 0.86 per cent to 81,291.77.
As many as 2,316 stocks declined while 1,765 advanced and 159 remained unchanged on the BSE.
The 50-share NSE Nifty dropped 213.65 points or 0.85 per cent to 24,870.10.
On the weekly front, the BSE benchmark jumped 709.19 points or 0.87 per cent, and the Nifty climbed 238.8 points or 0.96 per cent.
"Markets snapped a six-session winning streak and ended lower, losing nearly a per cent as sentiment turned weak from the outset and deteriorated further in the latter half.
"The weakness was primarily driven by caution ahead of US Fed Chair Jerome Powell’s Jackson Hole address and renewed concerns around global trade and geopolitical tensions, which dampened risk appetite. Domestic profit-booking after the recent rally and a pause in fresh FPI inflows further weighed on sentiment," Ajit Mishra - SVP, Research, Religare Broking Ltd, said.
From the Sensex pack, Asian Paints, UltraTech Cement, Tata Steel, ITC, HCL Tech, Kotak Mahindra Bank, Adani Ports, Tata Consultancy Services, HDFC Bank and Tech Mahindra were among the major laggards.
However, Mahindra & Mahindra, Maruti, Bharat Electronics and Sun Pharma were among the gainers.
The BSE smallcap gauge declined 0.35 per cent, and the midcap index dipped 0.23 per cent.
Among BSE sectoral indices, metal tanked 1.27 per cent, commodities (1.08 per cent), bankex (1.06 per cent), financial services (0.84 per cent), oil & gas (0.80 per cent), BSE Focused IT (0.77 per cent) and IT (0.77 per cent).
BSE Healthcare, telecommunication and capital goods were the gainers.
"Market sentiment turned cautious as profit-booking set in after a strong six-day rally driven by GST reform optimism and an S&P rating upgrade. Investors also awaited Powell’s comments, which could influence September's Fed policy direction. Adding to the pressure were concerns over the August 27 deadline for additional US tariffs on Indian goods," Gaurav Garg, Analyst, Lemonn Markets Desk, said.
In the six-day rally to Thursday, the BSE benchmark has climbed 1,765 points or 2.14 per cent, and the Nifty rallied 596 points or 2.4 per cent.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng settled in positive territory.
Markets in Europe were trading in the green in mid-session deals.
The US markets ended lower on Thursday.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,246.51 crore on Thursday, according to exchange data.
Global oil benchmark Brent crude dipped 0.24 per cent to USD 67.52 a barrel.
On Thursday, the Sensex climbed 142.87 points or 0.17 per cent to settle at 82,000.71. The Nifty rose by 33.20 points or 0.13 per cent to 25,083.75.
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Pak, Afghan forces trade fire along Chaman border: Report
Islamabad (PTI): A heavy exchange of fire between Pakistani and Afghan forces was reported from the key Chaman border, according to a media report on Saturday.
Injuries were reported from the district hospital, but no fatalities occurred, the Dawn newspaper reported.
Officials from both sides accused each other of instigating the flare-up late on Friday night across the border in the Balochistan province.
While Pakistani officials said that Afghan forces had fired mortar shells on the Badani area, Afghan Taliban spokesperson Zabihullah Mujahid claimed it was Pakistan that launched an attack on Spin Boldak, alleging that their forces were responding.
Pakistan's official sources told Dawn that Pakistani forces retaliated against the Afghan aggression and returned fire.
There were also reports of fighting on the Chaman-Kandahar highway, but these could not be immediately verified.
A senior official in Quetta confirmed on condition of anonymity that the exchange of fire started around 10 pm and continued until late at night.
The medical superintendent of Chaman district hospital said that three injured, including a woman, were brought to the medical facility.
There was neither any official word from the Inter-Services Public Relations -- Pakistan Army's media wing -- nor from the Foreign Office.
The Chaman border crossing, also known as Friendship Gate, connects Balochistan province to Afghanistan’s Kandahar.
Relations between Pakistan and Afghanistan have deteriorated amidst regular allegations by Pakistan regarding the failure of the Afghan regime to deny safe havens to Tehreek-e-Taliban Pakistan terrorists.
The two countries had agreed on a ceasefire following tensions last month, but the Foreign Office said last month that technically there was no truce as it was contingent on the Afghan Taliban stopping terrorist attacks in Pakistan, which they had failed to do.
