Opening bell: Markets off on US-China trade stand off; Sensex, Nifty extend slide
On account of jolt to Sino-US trade talks after the sweeping US charges against the Chinese telecom giant Huawei and nearing F&O expiry at Indian index, the Indian indices extended its slide on Tuesday. The BSE Sensex went off by 75 pointst o 35,580 levels while the 50-stock Nifty went down by 25 points to 10,636 mark. Shares of all sectors except tech and IT were in bleeding zone.
Mehul Kothari, Senior Technical Analyst - Equity at IndiaNivesh told Zee Business in a written statement, "Until past few weeks, we have been expecting the index Nifty to retest the 11000 mark. However, post yesterday’s breakdown the things look a bit gloomy. On the downside, the doors are now open for previous supports like 10530 – 10330 at least. In short, tables have turned and we have entered a ‘Sell on Rise’ market which will be negated above 11000 mark. We expect the volatility to pick up on the back of F&O expiry and interim budget and hence traders are advised to avoid over leveraged positions."
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Shares of Reliance Industries were off by 0.7 per cent, HPCL and IOCL stocks went down by around 0.5 per cent, BPCL stock went down by around 1.2 per cent while Jindal Drilling and Industries stock crashed by around 4.5 per cent. In banking sector shares of Yes Bank and HDFC Bank went down by around half a per cent. In infra sector Aban Offshore stock went down by near 1.5 per cent, GAIL shares were off by more than 2 per cent, NTPC stocks went down by more than half a per cent while Power Grid was off by near 1 per cent. However, after bleeding profusely on Monday Adani shares showed some recovery today. Adani :Ports and Special Economic Zone shares went up by more than 2 per cent while shares of Adani transmission went northward by around half a per cent.
Asian shares too stumbled on Tuesday and the dollar hovered near two-week lows as prospects for a long-awaited Sino-US trade deal was dealt another blow after the United States levelled sweeping criminal charges against China's telecom giant Huawei.
MSCI's broadest index of Asia-Pacific shares outside Japan got off to a shaky start with losses accelerating as other regional markets opened.
Australia and New Zealand led the losses, with their benchmark indices down 0.7 per cent each while South Korea's KOSPI was off 0.3 per cent. Chinese shares opened in the red too, with the blue-chip index down 0.2 per cent.
Japan's Nikkei slid about 1 per cent. US stock futures also lost ground following from a torrid overnight session on Wall Street, with E-Minis for the S&P 500 down 0.4 per cent.