Local stocks are geared for weak start to the day's trading session on negative Asian stocks. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slump 80 points at the opening bell.
Overseas, Asian stocks were trading lower Friday after a surprise tariff announcement from the United States escalated trade tensions between Washington and Beijing. Japan's cabinet on Friday approved a plan to remove South Korea from a so-called white list of countries that enjoy trade privileges with Tokyo. The moves followed after Japan last month placed restrictions on exports of three important high-tech materials to South Korea that are used by tech companies to make memory chips and display panels.
US stocks fell Thursday after President Donald Trump announced plans to impose additional tariffs Chinese imports to the US.
Trump said the US would impose 10% tariffs on $300 billion of Chinese goods beginning September 1. The president said trade talks with Beijing are continuing after US officials returned from negotiations in China. The 10% levies will apply to $300 billion of Chinese goods coming into the US. It doesn't include $250 billion of goods already subject to tariffs, the president said.
In the US, the Institute for Supply Management said its manufacturing index slipped to 51.2% in July, the lowest reading since August 2016. Meanwhile the IHS Markit US manufacturing index fell to its lowest since September 2009 at 50.4%.
Back home,the market ended steeply lower on Thursday, tracking losses in broader Asia. The sentiment was dampened after U.S. Federal Reserve Chairman Jerome Powell ruled out a lengthy easing cycle after delivering the first rate cut since the financial crisis. The Sensex fell 462.80 points or 1.23% to settle at 37,018.32, its lowest closing level since 8 March 2019. The Nifty 50 index fell 105.40 points or 1.24% to settle at 10,980, its lowest closing level since 1 March 2019.
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The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 1056.55 crore yesterday, 1 August 2019, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 561.28 crore yesterday, 1 August 2019, as per provisional data.
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