Sensex, Nifty retreat on lingering geopolitical worries

Mumbai: The benchmark BSE Sensex dropped by 75 points or 0.23 per cent in morning trade today as losses in pharma, oil and gas, banking and power stocks widened amid lingering worries over North Korea.

The 30-share index was down by 86.55 points, 0.27 per cent at 32,155.38 at 1130 hrs due to fall in Reliance Industries, ITC, PowerGrid and Axis Bank. It had opened weak at 32,207.63 and touched a high of 32,245.28 in early trade. It failed to hold onto the gains and fell further to touch a low of 32,138.38.

Market sentiment was lacklustre amid geopolitical tensions in the wake of North Korea's fresh missile launch that flew over Japan. The S&P BSE Mid-Cap index and the S&P BSE Small-Cap index were down 0.43 per cent and 0.18 per cent, respectively.

The NSE 50-share Nifty also trading lower by 34.95 points, 0.35 per cent to 10,051.45 at 1130 hours.

Major losers were, Powergrid 2.20 pct, AsianPaints 1.22 per cent, Axis Bank 1.15 per cent, Sunpharma 1.06 per cent and Cipla 1.05 per cent, while ONGC rose by 3.29 per cent followed by Infosys 1.10 pct, BhartiAirtel 0.88 per cent and Coal India 0.75 per cent.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 1334.23 crore yesterday, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 793.31 crore, as per provisional data.

Overseas, most Asian stocks edged lower after North Korea launched a missile in the direction of the east. US equities closed mostly lower yesterday, after strong inflation data raised the possibility of tighter monetary policy from the Federal Reserve.