Sensex Tumbles 351 Points On Trade-war Worries; Nifty Dips Below 10150

  • Sensex Tumbles 351 Points On Trade-war Worries; Nifty Dips Below 10150

Sensex Tumbles 351 Points On Trade-war Worries; Nifty Dips Below 10150

"It was a tumultuous day on the bourses as investors were wary of renewed trade war fears between the USA and China, and adopted a note of caution".

Tumbling down from their highest points in the day, the BSE Sensex closed 352 points, or ~1.05%, down at 33,019, while the Nifty50 fell 117 points, or ~1.15%, to 10,128 levels.

Earlier, the Trump administration proposed 25 percent tariffs on $50 billion worth of imports from China to protest Beijing's alleged theft of U.S. technology.

According to market observers, the domestic equity markets reacted to intensifying trade war fears after China on Wednesday unveiled a list of products worth $50 billion imported from the U.S. that will be subject to higher tariffs, including soybeans, cars and chemical goods.

Biggest losers in the 30-share index were Tata Steel (3.29%), Axis Bank (2.61%), Larsen & Toubro (2.52%), Kotak Mahindra Bank (2.25%), NTPC (1.86%), and Bharti Airtel (1.78%).

Shares of ICICI Securities made a weak debut on the bourses on Wednesday, dipping below the issue price on the first day of listing as investors remained cautious after the public issue of the company had failed to get fully subscribed.

Karthikraj Lakshmanan, Senior Fund Manager-Equities at BNP Paribas Mutual Fund said, " It has been a tumultuous day on the bourses today as investors grew tired of renewed trade war fears between the USA and China, and adopted a note of caution.

While all the sectoral indices slumped, the S&P BSE auto index emerged as the sole gainer.

The Bank Nifty index lost more than 350 points, while the Nifty Midcap index closed down over a percent. The selling was broad-based with the small- and mid-cap universe underperforming the large-caps. Mostly subdued Asian markets, weakness in major European markets and lower US index futures weigh on stocks here.

Japan's benchmark Nikkei 225 crept 0.1 percent higher to end at 21,319.55 but South Korea's Kospi slid 1.4 percent to 2,408.06 as the won weakened from the 3 year high it touched against the dollar earlier this week, motivating foreign investors to take profits. The Dow Jones industrial average rose 1.6 percent to 24,033.36.