MARKET WRAP: Sensex slips 262 points as US-China trade war fears escalate

Among sectoral indices, the Nifty Metal index hit an over 8 month low earlier today led by a sharp fall in the shares of SAIL, Jindal Stainless (Hisar) and NMDC. It eventually settled over 1.5% lower.

The benchmark indices ended lower on Tuesday tracking negative cues from their global peers.

The S&P BSE Sensex ended at 35,287, down 262 points while the broader Nifty50 index settled at 10,710, down 89 points.

Among sectoral indices, the Nifty Metal index hit an over eight month low earlier today led by a sharp fall in the shares of SAIL, Jindal Stainless (Hisar) and NMDC. It eventually settled over 1.5% lower. Nifty Realty index also fell nearly 2% today.

Trump warned on Monday that Washington would impose a 10 per cent tariff on $200 billion of Chinese goods after Beijing’s decision to raise tariffs on $50 billion in US goods. Trump said if China increases its tariffs again in response to the latest US move, “we will meet that action by pursuing additional tariffs on another $200 billion of goods.”

The retaliatory moves come after Trump said last week he was pushing ahead with tariffs on $50 billion of Chinese imports.

The trade frictions have kept financial markets on edge, with investors increasingly worried that a full-blown trade conflict could derail global growth.  

Globally, MSCI’s broadest index of Asia-Pacific shares outside Japan lost 1.2 per cent to its lowest since early February, dragged down by a slide in Chinese shares.

The Shanghai Composite Index dropped 4 per cent and plumbed its lowest since July 2016 and Hong Kong's Hang Seng shed nearly 3 per cent.

Japan's Nikkei lost 1.4 per cent, South Korea's KOSPI retreated 0.9 per cent while Australian stocks bucked the trend and added 0.2 per cent helped by a depreciating currency and an overnight bounce in commodity prices.

(With inputs from Reuters)

3:48 PM

Nifty Metal index ends 1.57% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
S A I L	82.85	86.95	-4.10	-4.72
JINDAL STAIN .HI	156.00	162.70	-6.70	-4.12
NMDC	107.90	112.05	-4.15	-3.70
VEDANTA	224.05	232.20	-8.15	-3.51
JINDAL STEEL	222.25	229.55	-7.30	-3.18

3:44 PM

Nifty Realty index ends 2% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
GODREJ PROPERT.	732.80	758.65	-25.85	-3.41
INDBULL.REALEST.	165.00	170.25	-5.25	-3.08
H D I L	22.00	22.65	-0.65	-2.87
PHOENIX MILLS	629.70	647.70	-18.00	-2.78
BRIGADE ENTERPR.	235.10	241.40	-6.30	-2.61

3:42 PM

Sectoral gainers and losers of the day

3:40 PM

BSE Sensex: ITC top gainer of the day, Vedanta, Sun Pharma, infosys among top losers

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 35,287, down 262 points while the broader Nifty50 index settled at 10,710, down 89 points.

3:17 PM

Nifty Metal index hits over 8-month low; Vedanta, NMDC slip nearly 4%

Shares of metal companies were under pressure with the Nifty Metal index hitting an over eight month low on the National Stock Exchange (NSE). Vedanta, Jindal Steel & Power, Hindalco Industries, Steel Authority of India (SAIL), NMDC and Hindustan Copper were trading 2% to 4% lower on the NSE. READ MORE

3:04 PM

ICICI Bank: Chanda Kochhar is no longer the boss and won't be missed

Chanda Kochhar, the chief executive officer of India’s second-biggest lender, has left the building, and her new deputy should waste no time in letting stakeholders know who the real boss is: It’s him. READ MORE

2:47 PM

Mutual fund managers go 'bottom up' in May: All you need to know

While mutual fund managers pumped Rs 136 billion into stocks in May the buying wasn’t across the board. Changes to portfolio holding suggest fund managers have been following bottom-up approach for stock picking amid spike volatility in May. READ MORE
 

2:30 PM

RBI may raise rates again by year-end but August hike still in play: Poll

The Reserve Bank of India (RBI) is expected to raise interest rates again in the final three months of this year, according to a Reuters poll of economists, but over one-third of them predicted a hike as early as at the next meeting in August.

 

Accelerating inflation and India retaining top spot as the fastest-growing major economy prompted the RBI to lift the repo rate by 25 basis points to 6.25 per cent at the June 4-6 meeting, wrong-footing a slim majority of economists polled by Reuters who had expected no change. READ MORE

2:14 PM

UltraTech Cement, NTPC among 19 stocks in BSE500 that hit their 52-week low

Shares of UltraTech Cement, NTPC, Bharti Infrastructure, Tata Power Company, Vedanta, India Cements and Shree Cement were among 19 stocks from the S&P BSE 500 index hitting their respective 52-week lows on the BSE.
 

CG Power & Industries, Cummins India, Inox Wind, JK Lakshmi Cement, Kirloskar Oil Engines, Mangalore Refinery Petrochemicals (MRPL), Manpasand Beverages, Motilal Oswal Financial Services and NHPC too hit their respective 52-week lows today. READ MORE

1:59 PM

Market Check

 

S&P BSE Sensex	35,369.34		-0.50%
Nifty 50	10,732.80		-0.62%
S&P BSE 200	4,640.55		-0.66%
Nifty 500	9,249.55		-0.74%
S&P BSE Mid-Cap	15,827.49		-0.91%
S&P BSE Small-Cap	16,631.61		-1.18%

1:45 PM

Top Nifty50 losers

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
VEDANTA	223.65	232.20	-8.55	-3.68	16348722
I O C L	169.00	173.90	-4.90	-2.82	5711710
B P C L	411.25	423.10	-11.85	-2.80	2431121
HINDALCO INDS.	225.00	231.00	-6.00	-2.60	6593420
H P C L	314.00	322.10	-8.10	-2.51	4153012

1:30 PM

Growing balance sheet may not be easy for gold loan companies

 

Stocks of Muthoot Finance (Muthoot) and Manappuram Finance (Manappuram) are down 10-12 per cent in the past one month. Besides overall volatility in the market, lower gold prices and rising competition impacted investor sentiment.

 

These factors may keep a check on stock prices, unless these firms allay market fears with better numbers. “Other companies and banks have also got into gold loan business. READ MORE

1:15 PM

DMart's slowing momentum makes brokerages cautious

The stock of Avenue Supermarts (which runs the DMart chain) is a favourite of investors. Its market capitalisation is higher than the combination of the next 10 listed multi-brand retailers.

 

However, while investor demand has led to the doubling of the stock since its listing, most brokerages are now cautious, barring a few such as Goldman Sachs and HSBC. READ MORE

1:01 PM

Trade war triggers an across-the-board risk aversion to commodities

 

Trade war triggered by the US has hit commodity prices hard, and most of them, including bullion, metals, oil, and even agri-commodities, have fallen to risk aversion. On Friday, US President Donald Trump announced a 25 per cent tariff on up to $50-billion worth of Chinese imports.

 

China immediately retaliated with a similar move. In the last two days, the prices of oil, gold-silver, other metals, and most other commodities fell 2-3 per cent, while cotton prices fell over 5 per cent. READ MORE