Trade war fears grip Sensex

by Frankie Norman Марта 26, 2018, 0:35
Trade war fears grip Sensex

Trading for the week began on a tiresome note as domestic stocks declined on Monday as the BSE Sensex, slipped by 252.88 points at 32,923.12. The Sensex settled the day 409 points lower at 32,596, while the broader Nifty50 settled at 9,998, down 116.70 points.

The Nifty Bank index fell 471.10 or 1.95% to close at around eight-month low of 23,670.40 as Axis Bank, PNB, Yes Bank, Canara Bank, ICICI Bank, IDFC Bank, SBI, Bank of Baroda, HDFC Bank, Kotak Bank, Federal Bank and IndusInd Bank dropped up to 3.87%.

The Nifty 50 index lost 197.10 points or 1.93 per cent at 9,998.05.

Investors fear that the US measures could escalate into a trade war, with potentially dire consequences for the global economy.

The broader 50 shares index Nifty was down by 125.05 points to go below 10,000-mark.

The Dow Jones Industrial Average fell 724.42 points, or 2.93 percent, to 23,957.89, the S&P 500 lost 68.24 points, or 2.52 percent, to 2,643.69, and the Nasdaq Composite dropped 178.61 points, or 2.43 percent, to 7,166.

In terms of investments, provisional data with the exchanges showed that foreign institutional investors purchased scrips worth Rs 1,628.19 crore, while the domestic institutional investors sold stocks worth Rs 935.41 crore.

Greater China markets plunged in early trade, with Hong Kong's Hang Seng Index sinking 3.16 per cent by 3:00 pm.

On Friday, China hit back, announcing plans to impose tariff on up to $3 billion worth U.S. imports including pork, recycled aluminum, steel pipes, fruit and wine.

"Sentiment remained weak following weak clues from the global market".

The escalating tensions between Beijing and Washington sent shivers through financial markets, as investors foresaw dire consequences for the global economy if trade barriers start going up.

Indian shares dived more than 1 percent on Friday, in line with global markets as heated rhetoric between the United States and China over import tariffs led to global trade war fears.

"Market corrected 10% from its peak while metal & PSU banks continue to be the laggards".

Sector-wise, realty fell 3.31 per cent, metal 2.89 per cent and bankex 2.08 per cent, among others. "We expect domestic chaos to stabilise as pressure of redemption will be over by the end of FY18 but pre-election volatility may take some time", Nair added.


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