Black Friday! Sensex plunges 409 points; Nifty ends below 10,000 for 1st time since October
Black Friday! Sensex plunges 409 points; Nifty ends below 10,000 for 1st time since October
Sensex today: The benchmark indices cracked on Friday with the Nifty ending below its crucial 10,000 for the first time since October 11, 2017 after Asian markets extended losses tracking Wall Street's worst day in six weeks as investors rushed to safety after US President Donald Trump announced long-promised tariffs on Chinese goods, stoking fears of a global trade war. The Sensex settled the day 409 points lower at 32,596, while the broader Nifty50 settled at 9,998, down 116.70 points. With today's crash, the Sensex and the Nifty have lost 10 per cent from their respective lifetime highs hit on January 29, 2018.
In the broader market, the BSE Midcap and the BSE Smallcap underperformed to tank over 2 per cent each. Market breadth, indicating the overall health of the market, turned sharply negative. On the BSE, 2,093 stocks declined, 603 stocks rallied, while 165 stocks remained unchanged.
Trump signed a presidential memorandum on Thursday that could impose tariffs on up to $60 billion of imports from China, although the measures have a 30-day consultation period. Investors fear that the US measures could escalate into a trade war, with potentially dire consequences for the global economy.
China unveiled plans on Friday to impose tariffs on up to $3 billion of US imports in retaliation against US tariffs on Chinese steel and aluminium products.
Reacting to this, MSCI’s broadest index of Asia-Pacific shares outside Japan tracked a large overnight drop in Wall Street shares and fell 2.4 per cent. Australian stocks lost 1.9 per cent and Japan's Nikkei dropped 3.2 per cent. South Korea's KOSPI retreated 2.3 per cent and Taiwan shares slid 2 per cent. Hong Kong's Hang Seng was down 3.6 per cent and Shanghai lost 2.8 per cent.
On Wall Street, the Dow shed 2.9 per cent, the S&P 500 dropped 2.5 per cent and the Nasdaq fell 2.4 per cent.
On Thursday, The Sensex ended at 33,006, down 129.91 points, while the broader Nifty50 closed at 10,114, down 40 points. In the broader market, the BSE Midcap and the BSE Smallcap indices underperformed to shed up to 1 per cent.
Latest Updates
Jayant Manglik, President, Religare Broking
Nifty fell sharply today and breached its crucial support at 10000, pressurized by weak global cues. The escalation of trade war between the US and China triggered selling pressure across the global including ours. After the gap down start, Nifty remained sideways and failed to see any significant recovery. The decline was broad-based wherein Realty and PSU banking counters were the top losers for the second consecutive session.
Earlier we're struggling with our own issues and pressure from the global front has worsened the situation. Besides, the breakdown of major psychological support at 10000 will further add to the worries. Traders have no option but to stay with the trend and use bounce to create fresh shorts. Nifty has next support at 9900.
Sectoral trend: All but two sectors ended in red
Source: NSE
Sensex cracks 10% from lifetime high
The Sensex settled the day 409 points lower at 32,596, while the broader Nifty50 settled at 9,998, down 116.70 points. With today's crash, the Sensex and the Nifty have lost 10 per cent from their respective lifetime highs hit on January 29, 2018.
Buzzing stocks
Hindalco Industries Ltd was among the top losers on the NSE index, falling to its lowest since July 2017. Tata Steel Ltd plunged to its lowest since Aug 2017.
Only seven stocks were trading in the green on the Nifty 50 index, with HCL Technologies Ltd up 1.4 percent.
Markets update
Metal stocks were down with the Nifty metal index declining over 3 percent to its lowest since Sept. 25, 2017. Chinese steel futures dropped more than 6 percent to their lowest in more than eight months, while iron ore fell to its lowest in nearly nine months.
Market update
Lenders were the biggest drag, with the Nifty Bank index hitting its lowest since September 2017. ICICI Bank Ltd dropped 2.3 percent, while HDFC Bank Ltd fell 1.2 percent.
Siddhartha Khemka, VP - Head of Research (Retail), MOFSL
Indian equity markets reacted negatively today, in-line with global markets. With US imposing fresh tariff targeted China, there is an increasing fear of a trade war which could impact economic growth. Markets are expected to remain volatile ahead of F&O expiry next week, as well as end of Indian financial year (last week before the LTCG tax kicks in). While traders should remain cautious, decline in good fundamental stocks would offer buying opportunities for long-term investors.
Nifty outlook by Angel Broking
Due to strong selling pressure, Nifty breached its previous day’s low of 10132, which we highlighted as a key support level. A violation of this point has resulted into a weakness and as a result, we would expect retesting of important swing low of 10,033. However, being such a crucial level on the technical as well as derivatives front, traders are advised to keep a close track of market behaves around this level. In case, if we see any significant unwinding in 10,000 puts, we would see Nifty entering sub-10000 levels. In this scenario, 9,970-9,930 would be seen as intraday levels. It’s advisable to stay light and avoid any kind of bottom-fishing in the market.
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Sensex heatmap at open
Source: BSE
Markets at Open
At 9:25 am, the Sensex was trading 396.45 points lower at 32,609, while the broader Nifty50 was ruling at 9,988, down 126.70 points.
Wall Street tumbles to worst day in six weeks
US stocks slumped on Thursday as President Donald Trump’s move to impose tariffs on up to $60 billion of Chinese imports drove fears about the impact on the global economy, fueling the biggest percentage declines in Wall Street’s three major indexes since they entered correction territory six weeks ago. Trump signed a presidential memorandum that will target the Chinese imports only after a consultation period. China will have space to respond, reducing the risk of immediate retaliation from Beijing.
Global markets on a tear as trade war fears escalate between US, China
Stock markets slid and perceived havens such as government bonds and the yen gained on Friday as investors rushed to safety after U.S. President Donald Trump announced long-promised tariffs on Chinese goods, stoking fears of a global trade war. Trump signed a presidential memorandum on Thursday that could impose tariffs on up to $60 billion of imports from China, although the measures have a 30-day consultation period.
FAST MONEY: Intraday trading tips
1) (SELL) TATA STEEL
Target: 575
Stoploss: Rs 585- CMP: Rs 590
- Trade war impact on stock
- The stock is weak on daily chart
SGX Nifty slips below 10,000 in pre-open trade
The Sensex slipped 355 points to 32,650, while the broader Nifty50 was ruling at 9,968, down 146 points in pre-open trade.
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