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Nifty tanks 1%, Sensex falls 224 pts as investors spooked by political uncertainties in the US

Wipro was up 3.5%, TCS 3.4%, Infosys 1% as dollar falls to six-month low. Lupin gains 0.6% and Sun Pharma 0.5%.

business Updated: May 18, 2017 18:16 IST
HT Correspondent
HT Correspondent
Hindustan Times, New Delhi
Sensex,Nifty,global markets
(Reuters photo)

Global markets were rattled and the dollar fell sharply on Thursday over political uncertainties in the United States after reports President Donald Trump tried to interfere with a federal investigation on a possible link between his election campaign and Russia.

Indian share benchmarks fell as investors booked profits and as Asian and European markets tumbled.

The NSE index Nifty fell more than 1% to close at 9,429.45, posting its biggest fall since January 20. The benchmark BSE Sensex closed down 0.7% at 30,434.79, its biggest fall since May 5, according to Reuters.

Both Sensex and Nifty were in a record-breaking spree in each of the previous three sessions.

Software and pharma exporters gained as the dollar fell to six-month lows. Among the IT bell weathers, Wipro was up 3.5%, TCS 3.4%, Infosys 1%. Lupin gained 0.6% and Sun Pharma 0.5%.

In Asia, Japan’s Nikkei was down 1.3% while Hong Kong’s Hang Seng fell 0.6%, Korea’s Kospi 0.3% and China’s Shanghai 0.45%.

All the European indices were in the red in intra-day trade.

The dollar hit six-month lows, while Wall Street posted the biggest intra-day slide since September, as pressure mounted on Trump with the U.S. Justice Department appointing former FBI chief Robert Mueller to probe a possible collusion between his election campaign and Moscow.

But analysts said the fall could be a temporary consolidation after both the key indexes hit record highs earlier this week.

“However, there is nothing to panic about; the markets are more active now than, say, they were a fortnight ago. Investors who stuck to the sidelines are likely to re-enter the markets looking for a bargain hunt,” said Anand James, chief market strategist at Geojit Financial Services.

“After (Nifty) hitting 9,500 levels, there could be a short consolidation phase.”

(With inputs from Reuters)

First Published: May 18, 2017 18:02 IST