Sensex, Nifty Clock Worst Day In Two Weeks On US-China Trade Concerns
Indian equity benchmarks registered their worst day in two weeks on the back of sell off in other Asian markets as US-China trade concerns resurfaced. The US President Donald Trump threatened to raise tariffs on China, triggering a global rout in risky assets. The Sensex and Nifty extended declines to the fourth day with today’s loss making session. HDFC Bank, Reliance Industries, HDFC, Infosys and Bajaj Finance were among the top drags on the Sensex.
The Sensex fell 0.93 per cent or 363 points to 38,600 and the NSE Nifty 50 Index plunged 114 points or 0.97 per cent to close at 11,598.
Chinese investors, caught off guard by US President Donald Trump’s tariff threats, dumped stocks and sold the yuan currency on Monday as a fresh deterioration in Sino-US trade tensions roiled Asian financial markets.
The country’s major stock indexes fell the most in more than three years. The blue-chip CSI300 index and the Shanghai Composite Index both tumbled more than 5 per cent, posting their steepest single-day drop since February 2016. Around 1,000 mainland firms plummet the maximum allowed 10 per cent daily limit.
Back home, seventeen of 19 sector gauges compiled by BSE ended lower with the S&P BSE Consumer Durables Index’s 2.8 per cent decline. Metal, Capital Goods, Bankex, Auto, Industrials, Finance, Consumer Discretionary Goods & Services and Basic Materials Indexes also fell between 1 and 2 per cent each.
On the other hand, S&P BSE Telecom Index was top gainer, up 0.5 per cent.
Selling pressure was broad-based as the S&P BSE MidCap Index fell 0.8 per cent and the S&P BSE SmallCap Index declined 0.85 per cent.
In the Nifty 50 basket of shares, Zee Entertainment was top loser, down 6.42 per cent at Rs.385. Titan, Yes Bank, Tata Motors, JSW Steel, Indiabulls Housing Finance, Hindalco, Bajaj Finance and UPL were among the top losers.
On the flipside, Bharat Petroleum, Tata Consultancy Services, Bajaj Finserv, Dr Reddy’s Labs, Bharti Airtel and Tech Mahindra were among the gainers.
The overall market breadth was extremely bearish as 1,593 shares ended lower while 871 closed higher on the BSE.
Sensex Plunges Over 450 Points, Nifty Drops Below 11,600
Domestic stock markets started Monday’s session over 1 per cent lower tracking weakness in global peers on US-China trade concerns. The S&P BSE Sensex fell as much as 453.47 points – or 1.16 per cent – to 38,509.79 in early trade, and the NSE Nifty moved to 11,585.10, down 127.15 points from the previous close. A selloff in financial, metal and auto stocks weighed on the markets. At 9:18 am, the Sensex traded 378.94 points – or 0.97 per cent – lower at 38,584.32, and the Nifty was down 114.75 points at 11,597.50.
Tata Motors, JSW Steel, Yes Bank, Hindalco, Tata Steel, Vedanta and Bajaj Finance shares – trading with losses of between 1.64 per cent and 3.75 per cent – were the top laggards on the 50-scrip benchmark index at the time.
HDFC Bank, HDFC and Reliance Industries were the top drags on the Sensex.
Analysts awaited more earnings reports from large caps.
Shares in heavyweights Bharti Airtel and ICICI Bank were in focus. The telecom and banking majors were due to report their earnings for the quarter ended March 31 later in the day.
Shares in global markets tumbled after US President Donald Trump raised pressure on China to reach a trade deal, saying he would hike US tariffs on Chinese goods this week. Equity markets, which had been largely expecting a trade accord, fell sharply across export-reliant Asia as further talks were thrown into doubt.
Chinese shares plunged more than 4 per cent at one point, while US stock market futures fell close to 2 percent. Crude oil prices also plunged.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.6 per cent shortly after China’s markets reopened from a three-day national holiday. Chinese blue-chips shed 4.2 per cent in early trade. The drop in Chinese shares came despite a move on Monday by China’s central bank to cut reserve requirements for smaller banks to help boost lending to small and private firms.
Japanese financial markets remain closed until Tuesday for a national holiday, but Nikkei 225 futures dropped 2.4 per cent to 21,955.
The Sensex and Nifty had ended 0.05 per cent and 0.11 per cent lower on Friday, extending their losses to a third session in a row.
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