Market trades with small gains

Key benchmark indices were trading with small gains in early trade. At 9:17 IST, the barometer index, the S&P BSE Sensex, was up 32.43 points or 0.09% at 37,617.94. The Nifty 50 index was up 12.05 points or 0.11% at 11,389.80. Sentiment was fragile as US-China trade tensions took a renewed toll on investor appetite for risky assets.

Among secondary barometers,the BSE Mid-Cap index was up 0.35%. The BSE Small-Cap index was up 0.22%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 649 shares rose and 303 shares fell. A total of 37 shares were unchanged.

Overseas, Asia markets were mixed on Tuesday following an escalation in trade tensions between the United States and China. US stocks closed lower Monday, with the S&P 500 and the Dow snapping multi-day win streaks.

President Donald Trump will impose 10% tariffs on $200 billion worth of Chinese imports, and those duties will rise to 25% at the end of the year, according to a Monday announcement. The White House removed about 300 goods from a previously proposed list of affected products, including smart watches, some chemicals and other products such as bicycle helmets and high chairs. Beijing has already warned that it will retaliate against the measures.

The US has already levied tariffs on $50 billion worth of Chinese products. Beijing responded with measures targeting $50 billion on American goods, raising fears about damage to the US farm industry. Earlier this month, reports suggested that the US was seeking to restart trade talks with China.

Meanwhile in the US, the New York Fed's Empire State index fell 7 points to 19 in September.

Back home, Tata Motors (down 0.73%), Wipro (down 0.55%), TCS (down 0.41%), State Bank of India (down 0.4%), IndusInd Bank (down 0.39%), Bharti Airtel (down 0.34%), Axis Bank (down 0.27%), ITC (down 0.2%) and HDFC (down 0.17%), were the major Sensex losers.

Hindustan Unilever (up 1.78%), Tata Steel (up 1.06%), Sun Pharmaceutical Industries (up 0.95%), NTPC (up 0.78%), Asian Paints (up 0.68%), Yes Bank (up 0.58%), ONGC (up 0.47%) and Mahindra & Mahindra (up 0.42%), were the major Sensex gainers.

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