Published: Thu, April 05, 2018
Medical | By Vernon Walton

Sensex ends 351 points lower; Nifty settles at 10128-mark

Sensex ends 351 points lower; Nifty settles at 10128-mark

The domestic equity markets reacted sharply to intensifying trade war fears after China announced additional tariffs on United States goods as countermeasures to the USA administration's proposed tariffs covering Chinese exports worth $50 billion with a suggested tariff rate of 25 percent.

On Tuesday, the USA government announced that it would impose 25% tariffs on $50bn worth of imports from China.

The escalating tariff war between the U.S. and China, with the Asian giant announcing retaliatory trade measures on Wednesday, shaved 352 points off the sensex which closed at 33,019. Asian shares ended mixed.

Globally, stocks were experiencing the heat of trade war. Mostly subdued Asian markets, weakness in major European markets and lower US index futures weigh on stocks here. Despite opening on a flat note, benchmark indices succumbed to global pressure to finally close the day with losses of over 1%. The selling was broad-based with the small- and mid-cap universe underperforming the large-caps. A trade war will definitely be the single-biggest trigger at the moment for global markets. For Dalal Street, Thursday's RBI policy, the upcoming results season and political developments would dictate the market's trend and should to be watched closely, experts said.

"The Reserve Bank's policy is likely to support the near-term sentiment, while a clarity on earnings growth and monsoon will provide more transparency", said Vinod Nair, head of research, Geojit Financial Services. The RBI is expected to maintain a status quo.

Benchmark Indian indices Sensex and Nifty also followed suit and fell over 1% each amid renewed weakness in global equities.

Elsewhere in Asia, Hong Kong's Hang Seng was up 0.20 per cent, while Japan's Nikkei rose 0.46 per cent in early trade today.

In the Sensex kitty, Tata Motors Ltd, Hindustan Unilever Ltd, Adani Ports and SEZ Ltd and Hero MotoCorp Ltd were the top gainers, whereas Tata Steel Ltd, Axis Bank Ltd, Larsen and Toubro Ltd (L&T) and NTPC Ltd were among the major losers.

Meanwhile, on a net basis, domestic institutional investors (DIIs) bought shares worth Rs 479.18 crore, while foreign portfolio investors (FPIs) sold shares worth Rs 376.51 crore on Tuesday, provisional data showed.

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