The S&P BSE Sensex plunged nearly 400 points in intraday trade on Tuesday weighed down by geopolitical concerns emanating from North Korea, led down by heavyweights such as Sun Pharma, RIL, HDFC, Tata Motors (DVR), and Coal India.
The selling pressure pushed nearly 100 stocks on the BSE to their 52-week low and little over 30 stocks hit their fresh all-time low.
As much as 95 stocks hit their fresh 52-week lows on the BSE which include stocks like Dynamatic Technologies, GRP Ltd, S H Kelkar, Sri Adhikari, Camlin Fine, Religare Enterprises, ESS DEE Aluminium, United Bank of India, United Breweries etc. among others.
As much as 31 stocks hit their all-time low on the BSE which include names like Abhinav Leasing Finance, Alora Trading Company, Bharati Defence and Infrastructure Ltd, Nitin Fire, RCL Retail, Panafic Industrials Ltd, Magadh Sugar Energy Ltd etc. among others.
Markets across the globe drifted lower and safe-haven assets such as gold jumped after North Korea fired a missile over northern Japan, fuelling worries of fresh tension between Washington and Pyongyang.
Asian markets sink further jolted by North Korean missile test over Japan which led to buying in safe havens assets such as gold, Japanese Yen as well as US Treasuries.
“This is a geopolitical risk and it is likely to be there for some but will soon fizzle out soon. Investors should use dips caused by any geopolitical tensions as a chance to buy into quality stocks,” A.K.Prabhakar, Head -Research at IDBI Capital told Moneycontrol.
“But, it is important is to hold on to some cash as we don’t know if this will go to the next level. There could be small correction till 9500, but that itself is doubtful,” he said.
The Nifty50 slipped below four crucial support levels placed at 9900, 9880, 9850 and 9800 as escalating geopolitical concerns take centre stage.
The Nifty slipped over 100 points led by losses in NTPC, Tata Power, Hindalco Industries, Bank of Baroda, Sun Pharma, HDFC, Coal India, and RIL.
However, 30 stocks on the NSE recorded fresh 52-week low which includes names like Laurus Labs Ltd, Page Industries, J B Chemicals, S H Kelkar, NDTV, ESS DEE Aluminium, Nitin Fire, Usher Agro etc. among others.
NTPC emerged as top loser down more than 4 percent on equity dilution by the government through offer for sale route.
The offer for sale issue of the country’s largest power generation company has opened for subscription today and will remain open till Wednesday.