Sensex falls 491 points on trade war fears
MUMBAI: Equity benchmark Sensex on Monday crashed over 491 points, piling on losses for a fourth session in a row, and the rupee weakened further as trade tariff disagreements between India and the US spooked investors. The NSE gauge Nifty also slipped over 151 points to close below the 11,700-mark.
MUMBAI: Equity benchmark Sensex on Monday crashed over 491 points, piling on losses for a fourth session in a row, and the rupee weakened further as trade tariff disagreements between India and the US spooked investors.
The NSE gauge Nifty also slipped over 151 points to close below the 11,700-mark.
Besides, fresh geopolitical tensions in the West Asia and concerns over the advancement of monsoon also unnerved market participants.
The Indian rupee Monday fell by another 11 paise to close at 69.91 to the the US currency, its third straight-session loss.
The domestic currency has lost 57 paise in the last three se senergy
THE RUPEE FELL BY ANOTHER 11 PAISE TO CLOSE AT 69.91 TO THE THE US CURRENCY, ITS THIRD STRAIGHT-SESSION LOSS
sions. The BSE gauge settled 491.28 points, or 1.25%, lower at 38,960.79. The index hit an intraday low of 38,911.49 and a high of 39,540.42.
Similarly, the broader NSE Nifty cracked 151.15 points, or 1.28%, to close at 11,672.15. During the day, the index touched a low of 11,657.75 and a high of 11,844.05. Over the past four sessions, the Sensex has lost 796.02 points or 2%.
Sectorally, BSE metal was the worst hit, losing over 3%, while index fell over 2% on Monday.
Broader BSE MidCap and SmallCap indices followed benchmarks, dropping up to 1.35%.
On the Sensex, Tata Steel emerged as the biggest loser with over 5% fall. Other major laggards were Vedanta, Tata Motors, Axis Bank, Bharti Airtel, Reliance, ONGC, Sun Pharma, Maruti and L&T, falling as much as 3.33%.
Bucking the weak market trend, Yes Bank, Coal India and Infosys rose.
India has effected a hike in customs duties on as many as 28 US products, including almond, pulses and walnut, in response to higher tariffs imposed by Washington on Indian products like steel and aluminium.
“Domestic market has been caught in a bearish grip as investors are increasingly turning cautious led by global trade war which has got murkier. Additionally, geopolitical tensions in the West Asia triggered a sudden spurt in oil prices. Domestic market consolidation will be maintained till global events unfolds like central bank and GST Council meet this week,” said Vinod Nair, head of research, Geojit Financial Services.
Global oil benchmark, Brent crude futures fell 0.46% lower at $61.76 per barrel.
“The rupee fell against the US dollar taking cue from other weak Asian currencies and widening Indian trade deficit for a third consecutive month,” said V K Sharma, head-PCG & Capital Market Strategy, HDFC Securities.