Stocks singed in trade war heat
Stocks fell for the sixth day running on Wednesday as the raging trade battle between US and China spooked investors who feared the worst for global growth.
The 30-share BSE Sensex plunged 487.50 points, or 1.27 per cent, to end at 37789.13. The broader NSE Nifty sank 138.45 points, or 1,20 per cent, to 11359.45.
Indian stocks took their cue from the global markets, which have been rattled ever since US President Donald Trump on Sunday threatened to hike tariffs on $200 billion worth of Chinese goods this week.
The recent flare-up in tensions between the world’s two top economies has sent investors scurrying to safe-haven assets such as bonds, gold and the Japanese yen.
A depreciating rupee, mixed corporate earnings and caution ahead of the election outcome added to the gloom, analysts added.
Index heavyweight Reliance Industries was the biggest loser in the Sensex pack, skidding 3.35 per cent, followed by Bajaj Finance, Tata Motors, Bajaj Auto, SBI and Vedanta.
“The domestic markets have been on the decline for the last two days mainly due to the flare up in the US-China trade war. A lack of an agreement between the two economies could hurt global growth in the near term. Also, the ongoing general elections have kept major market participants cautious. FIIs, which have been supporting the market through their inflows, have turned sellers in the past few days,” said Hemang Jani, head of advisory, Sharekhan BNP Paribas.
Foreign institutional investors sold shares worth a net Rs 645.08 crore on Tuesday, while domestic institutional investors purchased equities worth Rs 818.84 crore.
The scrip of Neogen Chemicals made a robust debut on the bourses on Wednesday, rising nearly 23 per cent at the close of trade over the issue price of Rs 215 per share.
The company’s shares closed at Rs 263.55, registering a sharp gain of 22.58 per cent over the issue price on the BSE. Earlier in the day, the scrip listed at Rs 251, up 16.74 per cent.