Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Markets / Stock Markets/  Markets tumble after Donald Trump threatens to increase China tariffs
BackBack

Markets tumble after Donald Trump threatens to increase China tariffs

The benchmark S&P BSE Sensex fell 0.93% to close at 38,600.34, while the NSE Nifty 50 index declined 0.97% to end at 11,598.25 points
  • Donald Trump on Sunday raised pressure on Beijing to strike a trade deal by announcing he would increase tariffs on $200 billion of Chinese imports to 25%
  • Investors also assessed the quality of latest quarterly corporate earnings. (Abhijit Bhatlekar/Mint)Premium
    Investors also assessed the quality of latest quarterly corporate earnings. (Abhijit Bhatlekar/Mint)

    Indian markets on Monday fell nearly 1% tracking the fall in global equity markets following US President Trump’s threat to increase tariffs on goods imported from China.

    The benchmark S&P BSE Sensex fell 0.93% to close at 38,600.34, while the NSE Nifty 50 index declined 0.97% to end at 11,598.25 points.

    Elsewhere, Japan’s Nikkei fell 0.3%, Hang Seng declined 3%, Shanghai fell 5.6%, Jakarta was down 1%, while CAC40 and DAX fell 2% each.

    "This (US tariffs on China) will be taken as a negative development by the economies across the world, which were under the impression that a trade deal would be possible in the immediate near future", said Rajnath Yadav Research Analyst - Fundamental Research Desk Choice Broking.

    US president Donald Trump on Sunday raised pressure on Beijing to strike a trade deal by announcing he would increase tariffs on $200 billion of Chinese imports to 25%. He also floated the possibility of extending the new 25% duty to another $325 billion worth of imports that aren’t now covered. China responded to Trump’s threat by saying it was considering pulling out of trade talks scheduled for this week.

    "The worsening situation has put the entire world in a state of flux where even a tiny escalation can cause big damage. If US continues to impose further restrictions on free trade flow with China and sanctions on export of Iranian oil, US’ dictatorship will turn all the other economies against them", said Umesh Mehta, Head of Research, Samco Securities Ltd .

    Investors also assessed the quality of latest quarterly corporate earnings. Early March quarter earnings indicate that the Indian economy has slowed down and the much-awaited revival in earnings growth may be delayed further, developments that are likely to deepen investor unease about stock valuations and a more than two-month-old rally in share prices.

    A Mint analysis showed that slower sales have dragged profits of companies that reported earnings for the quarter ended 31 March to the slowest in at least 13 quarters even as BSE’s benchmark Sensex has climbed more than 8% in the past two months.

    Yes Bank fell 5.3% after Bloomberg Quint reported that the lender may see pain emerging from its exposure to the Anil Ambani Group companies. That exposure, according to information provided by the bank’s management in investor interactions held this week, could be close to 13,000 crore .

    (Bloomberg contributed this story)

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
    More Less
    Published: 06 May 2019, 04:17 PM IST
    Next Story footLogo
    Recommended For You
    GENIE RECOMMENDS

    Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

    Let’s get started
    Switch to the Mint app for fast and personalized news - Get App

    Chat with MintGenie