Sensex, Nifty shed on Sino-US trade war escalation; JSW Steel, SAIL, Tata Motors, Maruti Suzuki stocks dip
The BSE Sensex lost 247 points and closed at 39,502 levels while the 50-stock Nifty went down 67 points and closed at 11,861 levels.
On account of China reprimanding the US officials for trade tariff the Indian indices ended around 0.6 per cent down after trading tepid in the first half of the intraday trade session. The BSE Sensex lost 247 points and closed at 39,502 levels while the 50-stock Nifty went down 67 points and closed at 11,861 levels. Metals, auto and PSU stocks were among the major losers in the intraday trade. JSW Steel, SAIL, Tata Motors, Maruti Suzuki took a dip in today's trade session.
Speaking on the current market scenario Simi Bhaumik, a SEBI registered technical equity analyst told Zee Business online, "Overall the market is bullish but it would remain range bound for few more trade sessions till the new government takes charge. The current range of the market is 11,800 to 11,950 and I advise stock market traders to adopt buy on dips strategy till the market breaks either side of the range."
Standing in sync with Simi Bhaumik's views Deepak Jasani, Head Retail Research, HDFC Securities said, "The drop in bank shares and rates come after President Donald Trump said on Monday the US was “not ready” to make a deal with China, before adding he expected one in the future. Trump also said tariffs on Chinese imports could go up “substantially. A Chinese official also hinted on Tuesday China could use its dominance over rare earth metals as leverage in the trade war.”
Metal stocks led the bear run on Dalal Street in the intraday trade as the BSE Metal index lost around 1.97 per cent. Metal major JSW Steel crashed 4.4 per cent, Jindal Steel & Power nosedived near 3 per cent, shares of Steel Authority of India (SAIL) dipped 3.58 per cent, Tata Steel share price went down 2.76 per cent while Vedanta stocks went down 1.95 per cent.
Auto stocks also witnessed heavy selloff today as the BSE Auto index lost 1.54 per cent. Auto major Maruti Suzuki India shares went down 2.33 per cent, Tata Motors lost 2.46 per cent, TVS Motor Company shares went off 2.06 per cent, shares of Cummins India dipped 3.32 per cent, Bharat Forge share price went down 3.64 per cent, Bajaj Auto counter went down 2 pere cent, Ashok Leyland share price went southward 1.64 per cent while Apollo Tyres counter slid 1.92 per cent.
PSU stocks also felt the heat of escalating Sino-US trade standoff as the BSE PSU index went down 1.44 per cent in the intraday trade. PSU major Allahabad Bank share price went down 2.89 per cent, Bank of Baroda shares dipped 2.54 per cent, Bank of India stocks went off 2.92 per cent, Bank of Maharashtra went 2.69 per cent southward, BHEL counter went down 2 per cent, Cara Bank stocks crashed more than 3 per cent, HUDCO stocks witnessed 2.63 per cent losses while ITI share price crashed near 6.6 per cent.
Asian stocks also had to witness heavy selloff after the escalating Sino-US trade war news. Japanese Nikkei 225 lost 1.22 per cent, South Korean Kospi went down 1.25 per cent, hang Seng went off 0.57 per cent while the Shanghai index nudged 0.16 per cent higher.