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BJP's ally troubles spook D-Street: Sensex plunges 510 pts, Nifty below 10,200

Market sentiment took a hit from reports of political fallout between the BJP and TDP.

Updated: Mar 16, 2018, 08.04 PM IST
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Market sentiment took a hit from reports of political fallout between the BJP and TDP.
The bears tightened their grip on Dalal Street, as benchmark indices Sensex and Nifty slipped over 1.5 per cent on Friday, bogged down by feeble cues, which further deteriorated on reports of political fallout between the BJP and TDP.

The 30-share BSE Sensex settled 510 points or 1.51 per cent lower at 33,176. The NSE Nifty50 plunged 165 points or 1.59 per cent to 10,195.

N Chandrababu Naidu-led Telugu Desam Party (TPD) moved a no-confidence motion against the NDA government in Parliament on Friday.

Two TDP ministers had earlier resigned from the Narendra Modi government following the Centre's refusal to grant Special Category Status to Andhra Pradesh, PTI reported.

Ajay Srivastava, CEO, Dimensions Consulting said, "Very clearly, the political landscape has changed dramatically post Gujarat election and now it is visibly clear that for a single party to get majority is going to be very difficult. I think that scenario is now working in mind of every investor."

Broader midcap and smallcap indices were no better and closed up to 1.07 per cent down.

Moreover, all the sectors on BSE closed in the red, with oil & gas and metal cracking over 2 per cent. Out of total 19 sectors on BSE, 15 suffered loss of over 1 per cent.

“Weak global markets led to a negative start, which further deteriorated on the reports of political fallout between the BJP and its allies. Nifty is likely to test 10,000 shortly. Traders should continue with "sell on rise" approach in the index. Stocks, on the other hand, are trading mixed so prefer stock specific trading approach rather focusing on any particular sector,” said Jayant Manglik, President, Religare Broking.

In Sensex, only Mahindra & Mahindra, Wipro, Hindustan Unilever and YES Bank managed to close in the green.

Tata Motors remained the biggest loser of the day, with a fall of 3.67 per cent. It was followed by Asian Paints, Adani Ports and Hero MotoCorp, falling up to 3 per cent. As many as 108 stocks hit fresh 52-week lows on BSE.

Most of the Asian stocks were on the defensive on Friday, as worries over the US investigation into the Trump Organisation tested investor nerves, which were already hit by fears that the US tariffs could hurt the global economy.

Nikkei 225 and Hang Seng closed the day 0.58 per cent and 0.12 per cent down, respectively.

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