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Sensex sheds over 230 points, as US-China trade tensions escalate

Sensex sheds over 230 points, as US-China trade tensions escalate
Highlights

Domestic equities extended their fall on Tuesday afternoon tracking Asian peers, as global trade tensions intensified after US President Donald Trump threatened to impose a 10% tariff on $200 billion worth of Chinese goods.

At 1.08 pm, the BSE Sensex was trading 235 points or 0.66% lower at 35,312.73, while the broader NSE Nifty was nearing the 10,700 level, trading 0.81% or 87.85 points lower at 10,712.00.

Domestic equities extended their fall on Tuesday afternoon tracking Asian peers, as global trade tensions intensified after US President Donald Trump threatened to impose a 10% tariff on $200 billion worth of Chinese goods.

Trump’s move came after Beijing decided to raise tariffs on $50 billion in US goods, which was in retaliation for US tariffs announced on Friday. 35,312.73-235.53-0.66

At 1.08 pm, the BSE Sensex was trading 235 points or 0.66% lower at 35,312.73, while the broader NSE Nifty was nearing the 10,700 level, trading 0.81% or 87.85 points lower at 10,712.00.

“Couple of things are happening - one is the trade war; second, some sort of realignment is taking place in the mutual fund schemes. And, finally, foreign investors have turned net sellers for sometime....,” said Arun Kejriwal, founder of Kejriwal Research and Investment Services. “So, all these are causing concern even though domestic inflows continue.”

Overseas investors have sold a net $448 million in domestic shares as of Monday, after being net buyers in each of the six previous years. They had bought net $7.8 billion worth of equities in 2017.

Index heavyweights such as Reliance Industries Ltd and Infosys Ltd dropped 1.3% and 2.1%, respectively.

Top oil marketing firms such as Hindustan Petroleum Corp Ltd, Indian Oil Corp Ltd and Bharat Petroleum Corporation Ltd dropped over 3% each, the top%age losers on the NSE index.

Shares of ICICI Bank Ltd dropped as much as 1.5% intra-day. At 1.15 pm, the stock was trading 0.10% lower. The country’s third largest lender on Monday named an interim head and said chief executive officer Chanda Kochhar would go on leave till the completion of a probe over an alleged conflict of interest.

Pharma stocks also came under selling pressure, with the Nifty Pharma index on track to halt a nine-day winning run.

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