Mumbai: Indian indices in recent days have peaked their record highs and fell for the fifth consecutive day on Friday, as Sensex and Nifty both factored in the dominant negative sentiments in major world markets.
European and Asian stock markets were mostly trading negatively on Friday as they calculated the consequences of the US-North Korean word war over successive missile tests, despite the United States issuing several warnings against the measure .
Wall Street also felt the heat of the geo-political floreup melting on the Korean peninsula, thus sending an undulating effect across the major world markets. US fears that they could go to a military confrontation with North Korea kept US investors on their toes. CNN reported that the Dow and S & P 500 had their worst week since March, and Wall Street’s fear meter was the strongest in nearly two years.
Back home, on Friday, the benchmark BSE index of 30 shares lost a huge 1 percent or 318 points to close the day at 31, 213.59. The largest Nifty also recorded a 1 percent decline. Nifty dropped 109 points to 9,710.80 in Friday’s closing hours.
Sensex started the day at a high of 31,355.92 and reached an intraday peak of 31,379.20. It also hit its low of 31,128.02 on Friday. In July, Sensex and Nifty broke all previous highs and crossed 32,000 and 10,000 brands respectively.
The growing tension between the two giant economies of Asia, India and China over the Doklam region has also worried investors in India’s stock market. All factors that have stalled market sentiment have also caused huge monetary losses to Dalal Street.
In the ongoing crash that saw indexes declining from record highs, investors witnessed their erosion of wealth by a gross Rs 5 lakh crore. The loss of money was triggered in part by the prevailing feelings of “selling” among investors who fear that the border clash that could turn into a large-scale war will substantially drag the market.
