Investors remain cautious due to subdued quarterly corporate earnings.
Investors remain cautious due to subdued quarterly corporate earnings.

Equity indices tumble amid global sell-off, J&K developments

ANI | Updated: Aug 05, 2019 16:20 IST

Mumbai (Maharashtra) [India], Aug 5 (ANI): Equity benchmark indices were under pressure on Monday amid a sharp global sell-off but the domestic market managed to pare some losses after the government moved a bill to revoke Section 370 in Jammu and Kashmir.
The BSE S&P Sensex closed 418 points or 1.13 per cent lower at 36,700 while the Nifty 50 edged 135 points or 1.23 per cent lower at 10,863.
On Monday, Union Home Minister Amit Shah moved a resolution in the Rajya Sabha stating that Article 370, which allowed Jammu and Kashmir to have its own Constitution, will no longer be applicable.
He also moved a bill proposing bifurcation of the state of Jammu and Kashmir into two union territories -- Jammu and Kashmir division and Ladakh. The move was widely acclaimed by political leaders, who believed the move will bring stability in the region.
However, investors remained cautious due to subdued quarterly corporate earnings and clear signs of an economic slowdown.
At the National Stock Exchange, all sectoral indices were in the red except for IT. Nifty media was down by 3.38 per cent, private banks by 1.88 per cent, metal by 1.78 per cent and PSU banks by 1.73 per cent.
Among stocks, Yes Bank took a massive 8.2 per cent drop to trade at Rs 81.05 per share. UPL lost by 5.8 per cent, Tata Motors by 5.1 per cent, Power Grid by 4.7 per cent and Grasim by 3.9 per cent.
Heavyweight Reliance Industries closed 3.4 per cent lower at Rs 1,143 per share after an international brokerage house downgraded the stock.
However, Bharti Airtel gained by 4.5 per cent while Bajaj Auto and Coal India were up by nearly 1.6 per cent. IT majors Tech Mahindra and Tata Consultancy Services gained by 2.2 per cent and 1.6 per cent respectively.
Meanwhile, Asian shares took a beating with Hong Kong and Japan markets leading the fall. While Hong Kong market fell 2.8 per cent partly on civil unrest, Japan's Nikkei declined 1.7 per cent on concerns that a weak yuan and ongoing trade tensions between the US and China will hurt exports.
South Korea's Kospi declined 2.5 per cent and China's Shanghai Composite index fell 1.6 per cent. The Chinese yuan broke below the psychological 7 per dollar threshold after US President Donald Trump decided late last week to impose 10 per cent tariffs on the remaining 300 billion dollars of Chinese imports. (ANI)