As geopolitical tensions intensified following North Korea launching a ballistic missle over Japan, stock markets across Asia tumbled on Tuesday. European markets have opened on a weak note as well, and the mood back home in India is bearish too.
Investors are also worried about the impact the tropical storm Harvey that hit Houston might make on the US economy.
Japan's Prime Minister Shinzo Abe stated that the missile posed a grave threat to the country of Japan, and that he would ask the United Nations to ramp up the pressure on Pyongyang. Ever since the group renewed sanctions against North Korea in early August, there have been exchange of words and actions between North Korea and the US.
With investors rushing to the safe haven of the yellow metal, gold futures rose to a 10-month high. Comex gold futures jumped $11.10, or 0.9%, to $1,326.52 a troy ounce today, its highest since early November.
In India, prices of gold soared by about Rs 550 to Rs 30,450 per ten gram at the bullion market today. Silver is up as well, rising more than Rs 900 to Rs 41,100 per kg.
Back in the Indian stock market, after four successive days of gains, stocks are reeling under pressure today. Only a few stocks are managing to find support.
Among Sensex stocks, only Dr Reddy's Laboratories and Lupin are up in positive territory. Even these stocks are up just marginally. From the Nifty fold, Tech Mahindra is up 0.8%. NTPC, Sun Pharmaceutical Industries, HDFC and Reliance Industries are down 2% - 3%. Coal India, ONGC, Axis Bank, Bharti Airtel and Infosys are also notably lower.
Bank of Baroda, Hindalco, Tata Power, Tata Motors DVR, Bharti Infratel, Indiabulls Housing Finance, Yes Bank, Ambuja Cements, Aurobindo Pharma, HCL Technologies and UltraTech Cement are down sharply.
Among Nifty Next 50 stocks, HPCL, Cummins India, JSW Steel, Oil India, GlaxoSmithKline Pharmaceuticals, LIC Housing Finance and DLF are up 0.3% - 1%.
Mirroring widespread selling, all the sectoral indices are down in the red. Midcap and smallcap stocks are also mostly weak. Howeve, at -0.78% and -0.96%, the losses recorded by the BSE Midcap and Smallcap indices are less than the loss of the Sensex (down 362.23 points at 31,388.59), which is down by about 1.1%. The Nifty50 of the National Stock Exchange is down 1.17% or 116.25 points at 9796.55.
The market breadth is very weak. Out of 2654 stocks traded on BSE, 1746 stocks are down with losses, while 787 stocks are up in positive territory. 121 stocks are hovering around their previous closing levels.
