US-China trade war knocks 451 points off Sensex, Nifty ends below 10,000
Metal stocks cracked in the wake of Chinese steel futures plunging over 6 per cent.
The BSE Sensex closed 410 points, or 1.24 per cent, down at 32,597, while the 50-share Nifty settled 117 points, or 1.15 per cent, down at 9,998 on Friday.
BSE Midcap and smallcap indices closed 1.36 per cent and 1.54 per cent down, respectively.
Metal, bank and financial stocks remained among the biggest laggards.
“The fears of a global trade war played a major role in today’s fall across global markets. Locally, markets have been facing headwinds since the start of February, be it the imposition of Long-term capital gains or the much talked about banking fraud. This being a politically busy year in India, volatility can stay high for an extended period. This opportunity should be used by the participants to accumulate quality businesses at reasonable valuations,” said Devang Mehta, Head – Equity Advisory, Centrum Wealth Management .
In the Sensex pack, only Adani Ports, Infosys, Power Grid Corporation and Mahindra & Mahindra closed with mild gains.
YES Bank, Axis Bank, State Bank of India and ICICI Bank remained the top drags on Sensex.
Metal stocks cracked in the wake of Chinese steel futures plunging over 6 per cent, touching their lowest level in more than eight months amid mounting trade tensions between China and the US. Iron ore fell to its lowest in nearly nine months.
Among bank stocks, shares of Union Bank of India cracked over 8 per cent after media reports suggested that the bank had registered a complaint with the CBI against Hyderabad-based Totem Infrastructure and its promoters in a case of fraud involving Rs 1,394 crore.
Among the sectors, BSE Teck and IT indices closed with mild gains, backed by gains in HCL Tech, Bharti Infratel, Mindtree, Infosys and Tech Mahindra.
BSE Metal remained the top loser among the sectoral indices on BSE, with a loss of nearly 3 per cent.
“The escalation of trade war between the US and China triggered selling pressure across the global including ours. After the gap down start, Nifty remained sideways and failed to see any significant recovery. The breakdown of major psychological support at 10,000 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,” said Jayant Manglik, President, Religare Broking.
Global stocks remained subdued, hit by fears of trade tensions between world's two largest economies--the US and China.