The Sensex ended 363 points lower at 38,600 (Reuters)
The Sensex ended 363 points lower at 38,600 (Reuters)

Sensex crashes 363 points as US-China trade tensions re-emerge

  • The US President on Sunday announced he would hike US tariffs on $200 billion worth of Chinese goods this week
  • He also said that the US would target hundreds of billions more soon

Equity benchmark Sensex Monday plummeted nearly 363 points in line with global market sell-offs as investors panicked sensing fresh trouble for the world economy after the US vowed to further raise tariffs on Chinese goods. Similarly, the NSE Nifty dived 114 points to settle below the 11,600-level.

In a sign of derailment of trade talks between the two global economic powers the US and China, US President Donald Trump on Sunday threatened to hike tariffs on USD 200 billion worth of Chinese goods.

Tracking tepid global market trend, the BSE gauge Sensex opened on a weak note at 38,719.33 against its previous close of 38,963.26. It lost further ground as the trade progressed and hit a low of 38,509.79 during the day. The index finally settled at 38,600.34, down 362.92 points or 0.93 per cent.

The broader NSE Nifty too started off the session on a bearish note at 11,605.80. The NSE benchmark fell to a low of 11,571.35 before settling the day at 11,598.25, losing 114 points or 0.97 per cent.

Indian equities traded under the shadow of volatile Asian stocks rattled by renewed fears that trade negotiations between the US and China are on the verge of collapse.

Besides, depreciation in rupee and mixed quarterly results further hit investor's sentiment in the domestic market.

In the Sensex pack, private sector lender Yes Bank emerged as the top loser with 5.30 per cent fall after ratings downgrade. Other major laggards were Tata Motors, Bajaj Finance, Tata Steel, HDFC and IndusInd Bank -- losing as much as 4.49 per cent. Bucking the negative market trend, ITC, TCS, Bharti Airtel and ONGC ended in the green.

Sectorally, BSE consumer durables, metals, realty, capital goods and auto indices fell up to 2.82 per cent.

Broader, BSE midcap and smallcap indices too ended up to 0.85 per cent lower.

"Indian markets ended the day on sharp note with the Index closing around 114 points in the red. The fall in the markets was mainly due to US President Donald Trump planning on doubling the tariff rate on USD 200 billion of Chinese goods," Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas, said.

According to traders, domestic market turned jittery after Trump's surprise move spooked global investors.

In a tweet on Sunday, Trump said he would raise import taxes on USD 200 billion in Chinese products to 25 per cent from 10 per cent on Friday.

06 May 2019, 01:32:32 PM IST

Deepak Nitrite shares surge on Q4 earnings

Deepak Nitrite shares were up 6.5% to 291.15 in afternoon trade. Standalone revenues rose 22% to 487.8 crore while net profit more than doubled to Rs. 56.6 crore in Q4 FY18. The board has recommended a higher dividend of 2 per share in FY19.

06 May 2019, 12:27:51 PM IST

Yes Bank shares fall 4% on ratings downgrade

Shares of Yes Bank today fell 4% in noon trade after ratings downgrade. Domestic rating agency Icra downgraded its long-term ratings along with a negative outlook, citing a spike in its lower-rated advances and falling core capital buffers. For Yes Bank, the agency downgraded the ratings on instruments totalling borrowings over 33,000 crore by the lender, Icra said.

06 May 2019, 11:19:00 AM IST

April service sector growth at seven-month low: Survey

India's services sector expanded at its slowest pace in seven months in April as some businesses postponed decisions and expansion plans until seeing results of the general election currently under way, a private survey showed today. The Nikkei/IHS Markit Services Purchasing Managers' Index slipped to 51.0 in April, the lowest since September, down from 52.0 the previous month. It remained above the 50 mark, the threshold separating growth from contraction, for an 11th consecutive month.

06 May 2019, 10:19:26 AM IST

Federal Bank Q4 net up 2-fold, Motilal Oswal maintains buy

Kerala-based Federal Bank Saturday reported an over two-fold jump in net profit for the March quarter at 381.51 crore on account of lower provisioning and higher interest income. The private sector lender had posted a standalone net profit of 144.99 crore in the fourth quarter of 2017-18 fiscal. Total income of the bank rose to 3,444 crore in the March quarter of 2018-19, from 2,862 crore in the same period last fiscal, Federal Bank said in a BSE filing. Provisioning for bad loans during the quarter more than halved to 177.76 crore, as against 371.53 crore in the corresponding period of 2017-18.

Domestic brokerage Motilal Oswal has maintained buy on Federal Bank with a target price of 120. “With normalcy returning to its home state and slippages under control, we expect asset quality to improve further. We estimate the bank to deliver 26% CAGR in earnings over FY19-21E and project RoE to improve to 12.9% v/s 9.8% in FY19E," the brokerage said in a note.

Federal Bank shares were trading 2.3% higher at 100 on BSE.

06 May 2019, 09:47:24 AM IST

Vodafone Idea shares jump 4%

Vodafone Idea Ltd.'s 25,000 crore rights issue received a good response from both foreign and public shareholders as the issue was oversubscribed nearly 1.08 times. Shares were up around 4% at 16.70.

(Read: Vodafone Idea's 25,000 crore rights issue oversubscribed nearly 1.08 times)

06 May 2019, 08:50:49 AM IST

Trump shatters historic calm in global markets

After weeks of warnings from many on Wall Street that price swings across global markets were too subdued, the U.S. president’s threat to boost tariffs on China sent volatility soaring Monday. U.S. stock-index futures slid more than 2 percent, and the Shanghai Composite Index fell as much as 4.1 percent. May futures on the Cboe Volatility Index jumped 15 percent.

06 May 2019, 08:50:50 AM IST

China equities tumble over 4%

China markets tumbled today after US President Donald Trump unexpectedly jacked up pressure on China to reach a trade deal, saying he would hike US tariffs on Chinese goods this week. Equity markets, which had been largely expecting a trade accord, fell sharply. Chinese shares plunged more than 4% while oil prices also plunged.