Indian markets bore brunt of US-N Korea brawl, traded in red this week

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Both the major indices lost over 1 per cent on Friday to cease their recent peaks.

Mumbai: Indian indices over past few days have shed their record highs and climbed down for the fifth consecutive day on Friday, as Sensex and Nifty both factored in the negative sentiments dominant across major global markets.

European and Asian stock markets were mostly trading in negative on Friday, while calculating the consequences of war of words between the United Stated and the North Korea over the latter’s successive missile tests despite the US issuing several warnings against the move.

Wall Street also felt the heat of the simmering geo-political flareup in the Korean Penninsula, thus sending a rippling effect across major world markets. Fears of the US that might go for a military confrontation with the North Korea kept the US investors on toes. CNN reported that the Dow and S&P 500 indices saw their worst week since March, and Wall Street’s fear gauge spiked by the most in almost two years.

Back home, on Friday, the benchmark, 30-share BSE index lost a whopping 1 per cent or 318 points to close the day at 31, 213.59. Broader Nifty too registered over 1 per cent decline. Nifty was down 109 points to 9,710.80 at the closing hours on Friday.

Sensex started the day at a high of 31,355.92 and reached an intraday peak of 31,379.20. It also touched its lowest point of 31,128.02 on Friday. In July, the Sensex and the Nifty broke all earlier record highs  and crossed 32,000 and 10,000 marks respectively.

The rising tension between Asia’s two giant economies India and China over Doklam region has also worried investors in India’s stock market. All the factors that have bogged down the market sentiments have also caused huge monetary loss to the Dalal Street.

In the ongoing crash that saw indices declining from record highs, investors witnessed their wealth eroding by a whopping Rs 5 lakh crore. The money loss was triggered partly by a prevailing ‘sell’ sentiments among investors who fear that the border standoff that could snowball into a full-scale war will drag down the market substantially.

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