Stock market on Tuesday sank under pressure from escalating tensions following firing of a missile by North Korea over Japan and general weakness across the globe. As a result, while Sensex recorded its worst single-day performance over a month, investor wealth got eroded by Rs 1.38 lakh crore amid heavy sell-off in the stock market.
The Sensex hurtled straight down to 31,388.39 -- a one- week low -- plunging over 362 points, registering its first loss after a four-day winning streak. Following weakness in stocks, the total market capitalisation of BSE-listed companies slumped by Rs 1,38,726.77 crore to Rs 1,29,77,705 crore.
“Concerns of heavy floods in the financial capital and the heavy selling by FIIs in equities over the past one month ensured that risk appetite was down to a trickle, especially as Asian markets were in a sea of red following North Korea threats,” said Anand James, Chief Market Strategist, Geojit Financial Services ltd.
For the Nifty, the fall was the most in over nine months while for the Sensex, this was the worst single-day performance over a month.
The Sensex hurtled straight down to 31,388.39 -- a one- week low -- plunging over 362 points and the NSE Nifty cracked below the 9,800 mark, registering their first loss after a four-day winning streak.
The Korean peninsula was on the boil after North Korea fired the ballistic missile that flew over Japan before plunging into the Pacific Ocean, officials said on Tuesday, in a clear message of defiance as Washington and Seoul conduct war games nearby.
This rankled investors worldwide, with Asian stocks hitting a soft patch. The negativity affected Indian markets, already cautious ahead of the August derivatives expiry On Thursday. European shares opened in the red too.