Sensex drops 190 points as North Korea missile tests scare markets

Indian shares snapped three sessions of gains on Monday as investors sought refuge in safe havens as tensions in the Korean peninsula escalated following North Korea’s sixth and most powerful nuclear test on Sunday.

The Sensex fell 0.6 percent to 31,702.25, while the broader Nifty ended 0.62 percent lower at 9,912.85.

The NSE’s volatility index, the domestic equivalent of the VIX fear gauge, rose as much as 19.53 percent in its biggest intraday percent gain since May 18. Sensex closed 189.98 points or 0.59% lower at 31,702.25

HDFC Bank Ltd and Housing Development Finance Corp Ltd fell for a second straight session. While, Coal India Ltd swelled over 3%. 

All the BSE indices were in red today with BSE Realty being the top loser with 1.39% decline, followed by BSE Telecom and BSE Basic Materials, which were down 1.32% ad 0.66%, respectively.

Global shares were mostly lower Monday on investor jitters over a weekend North Korean nuclear test that raised fears about regional stability.

South Korea said on Monday it was talking to the United States about deploying aircraft carriers and strategic bombers to the Korean peninsula after signs North Korea might launch more missiles in the wake of its sixth and largest nuclear test.