Sensex, Nifty dip on escalating trade war tension; SAIL, Adani Enterprises, Balrampur Chini stocks gain
The BSE Sensex 76 points to 39,680 while the 50-stock Nifty went down 19 points to 11,886 levels. The index Bank Nifty slipped 20 points to 30,943 levels.
The stock market of India witnessed selloff in the early morning trade session as the US President declined to give a deadline to impose a fresh round of tariff on Chinese imports that further fueled the trade standoff between China and the US. The BSE Sensex 76 points to 39,680 while the 50-stock Nifty went down 19 points to 11,886 levels. The index Bank Nifty slipped 20 points to 30,943 levels. Hindustan Construction, SAIL, Adani Enterprises, Balrampur Chini and SpiceJet stocks were among the top gaining stocks in the early morning session while Jet Airways, Yes Bank, Manpasand Beverage and DHFL were among the top losing stocks in the intraday trade.
Prakash Pandey, Head of Research at Fairwealth Securities said, "Overall the market is bullish and is trading in the range of 11,800 to 11,980. Investors are advised to follow buy on dips strategy until the market is trading in this range." However, Pandey reminded stock market investors that now things are going well. Dow rallied more than 1000 points in last four trading sessions."Pandey went on to add that the US President Donald Trump is solving few issues before his Re-Election rallies citing, "Maybe Trump is a genius, after all. What if he finally gets the steep Fed rate cuts he has been demanding? After that, he ends the trade wars, tariffs go to zero, and the stock market surges to new highs -- just in time for the 2020 election!" Prakash Pandey went on to add further that the DIIs are getting the cue from the FII and hence it's the global growth that would give a cue to the domestic investors and hence it would be correct if we say that ímprovement in domestic and global growth holds key to further movement of the Dalal Street."
Tech stocks led the blood bath on Dalal Street as the BSE Tech index lost 0.67 per cent in the intraday trade. Tech major Sterlite Technologies shed over 2.5 per cent, Reliance Communications share price dipped 1.23 per cent, HCL Technologies counter went down near half a per cent while Bharti Infratel, Dish TV India, Infosys, ITI, NIIT Technologies, MphasiS, MindTree etc. were in the red zone with a whisker.
Metal stocks also witnessed ehavy selloff in the morning trade session as the BSE Metal index lost around 0.96 per cent. Metal major NMDC crashed 4.66 per cent, shares of Vedanta went down 1.68 per cent, Tata Steel counter dipped near 1 per cent, Jindal Steel & Power, Hindalco and JSW Steel went down around 1 per cent.
Among Asian markets, Japanese Nikkei 225 index lost 0.61 per cent, South Korean Kospi dipped 0.76 per cent, Hang Seng went down 0.58 per cent while the Shanghai market nudged 0.12 per cent higher.