Equities skid on geo-poltical tensions, sell-off in banks, auto stocks (Lead)

Mumbai Sep 4 (IANS) Negative Asian markets on the back of escalating geo-political tensions and heavy selling pressure in banking and auto stocks dragged key Indian equity indices -- the NSE Nifty50 and the BSE Sensex -- lower by almost one per cent each during the mid-afternoon trade session on Monday.

Around 12.40 p.m. the wider 51-scrip Nifty50 of the National Stock Exchange (NSE) fell by 79.60 points or 0.80 per cent to trade at 9 894.80 points.

The 30-scrip Sensitive Index (Sensex) of the BSE which opened at 31 932.20 points traded at 31 658.18 points -- down 234.05 points or 0.73 per cent from its previous close at 31 892.23 points.

The Sensex has so far touched a high of 31 932.20 points and a low of 31 560.32 points

The BSE market breadth was bearish with 1 724 declines and 725 advances.

"Indian equity benchmark indices edged lower in opening deals led by losses in pharma heavyweights Lupin Sun Pharma and Dr. Reddy s Labs " Dhruv Desai Director and Chief Operating Officer of Tradebulls told IANS.

"Markets are back in the grip of a bear hug after North Korea s nuclear bomb test on Sunday fanned the flames of geopolitical tensions. Stocks across Asia tumbled as investors rushed to safe haven assets " he added.

On Friday the benchmark indices closed on a higher note on hopes of a policy rate cut by the Reserve Bank of India (RBI) and broadly positive global cues.

The Nifty50 rose by 56.50 points or 0.57 per cent to close at 9 974.40 points while the Sensex closed at 31 892.23 points -- up 161.74 points or 0.51 per cent.

--IANS
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