| Trade war jitters drag Sensex 410 pts; Nifty falls 2% for week, ends below 10K | | | Agencies
Bears tightened their grip on the Dalal Street as benchmark indices shed more than 1 percent following negative lead from global stocks on US-China trade war concerns. Rising oil prices also dented sentiment. Buying support was largely very low as traders stayed away from taking big positions ahead of weekend.
All sectoral indices ended in the red, barring IT that gained 0.4 percent. Metals, PSU Bank, Realty and Nifty Bank indices hit badly, falling 2-3 percent.
More than Rs 1.5 lakh crore worth of investors' wealth erosion has seen on this freaky Friday.
The 50-share NSE Nifty closed below the psychological 10,000-mark for the first time since October 11, 2017, falling 116.75 points or 1.15 percent to 9,998.05. For the week, the index lost 2 percent
The 30-share BSE Sensex was down 409.73 points or 1.24 percent at 32,596.54, taking the weekly loss to 1.7 percent.
Experts expect the market to correct further amid consolidation as the Nifty has broken 10,000 levels but this sould be used as a buying opportunity for investors who missed the bus earlier.
"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," Siddhartha Khemka,VP - Head of Research (Retail), MOFSL said.
According to him, 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).
Deven Choksey of KR Choksey Securities said as far as long term trade is concerned, technically in the market anything can be possible, capitulation with multiple headwinds can pull the market down to 9,750 on the Nifty but fundamentals are not supporting the fall now.
Jayant Manglik, President, Religare Broking said 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 9,900, he added.
Choksey said while the negative sentiment is refraining retail investors from participating in the market, for long term investors opportunities are plenty in the market, given the strong earnings visibility for next 6-8 quarters.
Kemka also said while traders should remain cautious, decline in good fundamental stocks would offer buying opportunities for long term investors.
President Donald Trump on Thursday signed an executive memorandum that would implement tariffs on up to USD 60 billion in imports from China. On the other hand, China unveiled a list of 128 US products as potential retaliation targets.
Asian markets closed sharply lower, tracking steep declines in US, which took a hit on fears of a potential trade war. Japan's Nikkei 225 was the biggest loser in percentage terms among Asian markets, down 4.5 percent. China's Shanghai Composite, Hong Kong's Hang Seng, Australia's ASX 200 and South Korea's Kospi ended 2-3% down.
European stocks - France CAC and Germany DAX were down 2 percent each while Britain FTSE was down 1 percent at the time of writing this article.
Back home, midcaps stocks showed some recovery in last hour of trade as the Nifty Midcap index trimmed losses to 1.5 percent from 2.3 percent.
All Nifty bank stocks closed with sharp cuts. HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, SBI and Kotak Mahindra Bank were down up to 4 percent.
Hindalco and Vedanta lost 5 percent each. Reliance Industries, L&T, HDFC, Tata Motors, Tata Steel and Maruti Suzuki slipped 1-2 percent while HCL Technologies and Bharti Infratel rallied more than 2 percent followed by Infosys.
Fortis Healthcare was down 7 percent after Delhi HC ordered attachment of all disclosed assets of Singh brothers.
Dilip Buildcon, meanwhile, has ended mildly higher after it was declared lowest bidder for NHAI project worth Rs 936 cr in Telangana.
Shares of Max Financial ended 1.4 percent higher after it acquired 0.74 percent stake in Max Life for Rs 153.3 crore from Axis Bank.
Bhushan Steel has ended over 5 percent higher after it said that it will submit resolution plan submitted by Tata Steel to NCLT for approval.
Union Bank of India tumbled over 8 percent to hit a one-year low amid concerns over losses incurred in a Rs 1,394-crore loan fraud case.
Shares of GAIL ended flat amid reports that the Centre is considering turning the firm into a 'nodal authority' for gas pipeline infra. The aim is to mimic NHAI’s operations.
Speaking of gas stocks, Indraprastha Gas was down 3 after it announced a reduction in CNG prices in Uttar Pradesh.
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