Sensex crashes by 839 points on geopolitical tensions, bank stocks hit badly
Aug 31, 2020
Mumbai (Maharashtra) [India], Aug 31 : Equity benchmark indices erased all morning gains and cracked by over 2 per cent on geopolitical concerns and ahead of the GDP first-quarter data.
Reports said the Chinese troops 'carried out provocative military movements in eastern Ladakh to change the status quo' but they were blocked by Indian soldiers, the government said. The incidents took place in the between August 29 to 30 night.
Bank stocks had gained ground in early morning deals as investors looked forward to the debt restructuring system kicking-in. But traders booked profit even as the RBI-led moratorium on repayment of loans ended today.
At the closing bell, the BSE S&P Sensex was down by 839 points or 2.13 per cent at 38,628 while the Nifty 50 lost by 305 points or 2.62 per cent at 11,342.
All sectoral indices at the National Stock Exchange were in the red with Nifty pharma losing by 5.2 per cent, PSU bank by 5 per cent, private bank by 3.6 per cent metal by 4.2 per cent and realty by 4.8 per cent.
Among stocks, Sun Pharma tumbled down by 7.3 per cent to close at Rs 515.25 per share while Cipla slipped by 5.5 per cent to Rs 707.35.
Government-owned State Bank of India lost by 5.9 per cent to Rs 211.45 per share as private lender IndusInd Bank lost by 5.1 per cent to Rs 631.25.
The other prominent losers were Bajaj Finserv, Bajaj Finance, Zee Entertainment and NTPC.
However, Future Retail was up by 20 per cent to Rs 162.30 per share after Mukesh Ambani-led Reliance Industries said it will acquire the company's retail, wholesale, logistics and warehousing business for Rs 24,713 crore.
GVK Power and Infrastructure rose by 4.9 per cent after the company along with its subsidiaries GVK Airport Developers and GVK Airport Holdings agreed to cooperate with Adani Airport Holdings, the flagship holding company of Adani Group for its airports business and a subsidiary of Adani Enterprises Ltd.
But Adani Enterprises was down by 3.8 per cent in today's trading at Rs 277.30 per share.
Meanwhile, Asian shares were mixed. Tokyo's Nikkei rallied by 1.12 per cent aided by news Warren Buffett's Berkshire Hathaway had bought more than 5 per cent stakes in each of the five leading Japanese trading companies.
But Hong Kong's Hang Seng fell by 0.96 per cent and the Shanghai Composite was down by 0.24 per cent.
