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Nifty falls 1.56% amid sell-off

24 September 2017

Pharma stocks for a second day in row were performing better, being the only sectoral index to be in green.

The lingering tension in the Korean peninsula, China's credit downgrade by S&P Global ratings and US Federal Reserve's hint about a December rate hike further dampened the sentiments on the domestic bourses. "Investors are also fretting on the impact on fiscal deficit targets if the government were to go overdrive with economic revival plans".

"The main indices - NSE Nifty50 and BSE Sensex - fell steeply during the day's trade".

The Indian stock markets which witnessed sluggish trading sessions over the entire week came down crashing after North Korea threatened to test a nuclear weapon in the Pacific.

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Indian shares plunged the most in ten months on Friday as concerns over the nation's fiscal deficit and escalating tensions in North Korea prompted a selloff.

Reuters late Thursday reported that the additional spending was estimated to widen the fiscal deficit for the financial year ending March to 3.7% of the GDP from a budgeted aim of 3.2%.

"The domestic currency hit 65 levels against the United States dollar for the first time in more than five months on the back of speculation about the government going in for a fiscal deficit relaxation, with talk of a Rs 40,000-Rs 50,000 crore stimulus". The rupee today dropped by 34 paise to a six and a half month low level of 65.15 against the U.S. dollar.

Following extreme weakness in stocks, the market capitalisation of BSE-listed companies slumped Rs 2,68,853.7 crore to Rs 1,33,40,008 crore.

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However, the rupee recovered in the intra-day trade to end the day at 64.79 per dollar.

Major Sensex losers were: Tata Steel, down 4.70 per cent at Rs 654.55; Larsen and Toubro, down 3.49 per cent at Rs 1,184.90; Reliance Industries, down 2.83 per cent at Rs 817.50; ICICI Bank, down 2.77 per cent at Rs 277.10; and Hero MotoCorp, down 2.59 per cent at Rs 3,788.15.

Sector-wise, all the 19 sub-indices of the BSE closed in the red, led by capital goods (down 603.52 points), metals (down 554.26 points) and banking (down 526.84 points) indices.

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Nifty falls 1.56% amid sell-off