Nifty ends below 10,000, down 1% amid trade war fears, Sensex slips 410 pts

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The Sensex and Nifty dived more than 1 per cent on Friday, in line with global markets as heated rhetoric between the United States and China over import tariffs led to global trade war fears.

The S&P BSE Sensex ended at 32,597, down 410 points while the broader Nifty50 index settled at 9,998, down 117 points.

US President Donald Trump signed a presidential memorandum that could impose tariffs on up to $60 billion of Chinese goods including steel, although the measures have a 30-day consultation period. In retaliation, China unveiled plans to impose tariffs on up to $3 billion of US imports.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 2.4 per cent, tracking a huge overnight fall in the US markets.

The NSE index fell below the 10,000 level for the first time this year and was trading much below the 200-day simple moving average of 10,172.7.

Lenders were the biggest drag, with the Nifty Bank index hitting its lowest since September 2017. Axis Bank dropped 3.85 per cent, while Punjab National Bank fell 3.73 per cent.

Metal stocks were also down with the Nifty metal index declining over 3 per cent to its lowest since September 25, 2017.

(with inputs from Reuters)

4:15 PM

MARKET COMMENT Mayuresh Joshi, Fund Manager, Angel Broking

Trade war is expected to trigger a slowdown in industrial investments and also in output. That is what is putting pressure on world markets. If the Nifty cracking below the 10,000 mark is any indication, then the Indian markets are surely sufficiently worried.

4:10 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking

Nifty fell sharply today and breached its crucial support at 10000, pressurized by weak global cues. 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 decline was broad-based wherein Realty and PSU banking counters were the top losers for the second consecutive session.

 

Earlier we're struggling with our own issues and pressure from the global front has worsened the situation. Besides, 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 9900.

4:08 PM

MARKET COMMENT Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan

 

The Nifty has slipped significantly from the all time high of 11,171 registered in January this year. On the way down it has broken certain crucial supports & today another major support i.e. the psychological mark of 10,000 gets added to the list. This shows that the bears are clearly having upper hand on the index. 

 

During the course of the fall since January, each attempt to form pullback fizzled out near the crucial daily moving averages, which have attracted fresh round of selling each time. The recent bounce that lasted for couple of sessions couldn’t even reach those averages thus highlighting the bearish momentum. The same is evident from the momentum indicators as well; as the number of momentum indicators on various time frames are in sync with the bearish price action & are suggesting that the fall is far from over. 

 

In terms of Elliott Wave Theory, Nifty is witnessing wave extension on the downside, which means further downside over next few sessions. On the downside 9,830-9,800 will now be the initial area to watch out for with potential to slide down to 9,600 in the medium term. On the other hand, 10100-10230 shall act as a key hurdle zone.

3:45 PM

Nifty Bank index slips to a 9-month low, ends 1.95% down. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS()	LOSS(%)	VOLUME
YES BANK	286.65	298.25	-11.60	-3.89	21616971
CANARA BANK	244.75	254.65	-9.90	-3.89	6281487
AXIS BANK	499.50	518.20	-18.70	-3.61	29385012
PUNJAB NATL.BANK	93.15	96.55	-3.40	-3.52	23072291
ST BK OF INDIA	234.80	241.55	-6.75	-2.79	27145286

3:42 PM

Nifty Metal index cracks 2.90%. Top losers: 

COMPANY	LATEST	PREV CLOSE	LOSS()	LOSS(%)	VOLUME
S A I L	68.70	73.70	-5.00	-6.78	29845011
JINDAL STAIN .HI	155.30	165.40	-10.10	-6.11	992006
VEDANTA	276.00	291.80	-15.80	-5.41	13284893
JINDAL STEEL	213.75	224.90	-11.15	-4.96	19679234
HINDALCO INDS.	206.10	216.80	-10.70	-4.94	12818084

3:39 PM

Sectoral Trend

3:37 PM

BSE Sensex: Axis Bank, Yes Bank, ICICI Bank, SBI among top losers

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 32,597, down 410 points while the broader Nifty50 index settled at 9,998, down 117 points.

3:22 PM

Gitanjali Gems falls below face value at Rs 9.65; tanks 85% in six weeks

Gitanjali Gems is locked in lower circuit of 5% at Rs 9.65, and has slipped below its face value of Rs 10 on the BSE. The stock is trading at fresh record low, down for the 26th straight sessions.

 

It has lost as much as 85% from Rs 62.85, since February 14, the day the Punjab National Bank (PNB) fraud came to light. READ MORE

3:11 PM

Union Bank of India shares slump after lender makes fraud complaint

Union Bank of India Ltd shares fell to a more-than 11-year low on Friday after federal police registered a case against a private company for allegedly cheating eight lenders, including Union Bank, out of 13.94 billion rupees ($214 million).

 

The Central Bureau of Investigation (CBI) registered the case against Hyderabad-based Totem Infrastructure and directors after a complaint from Union Bank, which the CBI said had been cheated out of about 3.14 billion rupees. READ MORE

2:55 PM

Gold Update

Gold prices rose to a two-week high on a softer dollar as investors scurried to safety after US President Donald Trump took a step towards long-promised anti-China tariffs, stoking fears of a global trade war.

 

US gold futures for April delivery rose 1.12 per cent to $1,342.30 per ounce.

2:43 PM

Europe Trade

European equities traded lower , as heightened fears of a global trade war shook stock and currency markets.

 

The pan-European Stoxx 600 was down around 0.82 per cent, with almost all sectors and major bourses in negative territory.

2:30 PM

HDFC valuations indicate upside for stock: Listing of biz units is positive

 

While investor sentiment is down on public sector banks (PSBs) and some private corporate lenders, there are others which are expected to continue creating value for its shareholders. Housing Development Finance Corporation (HDFC) is one such.

 

The HDFC stock has gained about 30 per cent over the past year as compared to PSBs on the Nifty, down 13.5 per cent; private corporate lenders have gained 15.3 per cent. After reporting a strong set of numbers in October-December 2017 (Q3, see table), a sum-of-the-parts (SOTP) valuation of the company looks attractive. READ MORE

2:15 PM

Market Check

 

S&P BSE Sensex	32,632.89		-1.13%
Nifty 50	9,991.65		-1.22%
S&P BSE 200	4,369.56		-1.21%
Nifty 500	8,782.30		-1.37%
S&P BSE Mid-Cap	15,642.88		-1.68%
S&P BSE Small-Cap	16,746.13		-1.86%

2:03 PM

NSE is back in race to buy 25% stake in the Dhaka Stock Exchange

The National Stock Exchange (NSE) is back in the race to buy 25 per cent stake in the Dhaka Stock Exchange (DSE), after the Bangladesh Securities and Exchange Commission (BSEC) rejected an application by a consortium of Chinese exchanges. Sources say the NSE plans to participate in a new bidding process.

The Chinese consortium had offered to pay $119 million for the 25 per cent stake in the DSE, against the NSE’s bid of $87 million. READ MORE