Sensex, Nifty Open On Negative Note Amid US-China Trade War Concerns
The domestic stock indices opened on a choppy note on Wednesday after posting their highest close in more than five months on Tuesday. The S&P BSE Sensex tanked 43.05 points or 0.12 per cent to trade at 36,196.57 in early morning trade. The Nifty50 index plunged 7.75 points or 0.07 per cent to trade at 10,939.50. However, the domestic stock markets witnessed some recovery later. At 11:05 am, the S&P BSE Sensex traded at 36,284.19, with a gain of 44.57 points or 0.12 per cent while the broader Nifty50 was at 10,963.25 level, up 16 points. Negative global cues impacted the domestic indices in the opening trade. Investors cashed profits in metal, healthcare, PSU and auto stocks, amid weak Asian cues after US-China trade spat escalated.
US tariffs on an additional $200 billion worth of Chinese goods sent Asian stocks tumbling on Wednesday, with China’s markets leading the declines, as trade tensions between the world’s two biggest economies continued to deteriorate. The United States had just imposed tariffs on $34 billion worth of Chinese goods on Friday, drawing immediate retaliatory duties from Beijing on US imports in the first shots of a heated trade war. U.S. President Donald Trump had warned then that his country may ultimately impose tariffs on more than $500 billion worth of Chinese imports.
Major gainers in the 30-share Sensex pack in early session were TCS (+1.81%), Wipro (+1.13%), Infosys (+0.74%), Sun Pharma (+0.48%), Induslnd Bank (+0.32%) and HDFC (+0.28%). Top laggards in the Sensex pack at the same time were ITC (-0.58%), SBIN (-0.53%), Coal India (-0.86%), Tata Steel (-0.77%), Vedanta (-1.86) and HeroMotoCorp (-1.45%).
TCS (+2.13%), Tech Mahindra (+1.73%), India Bull Housing Finance (+1.26%), Wipro (+1.26%) and HCL Tech (+0.96%) were leading the pack of Nifty gainers while main losers on the index in the morning session were Vedanta (-1.90), Hindalco (-1.79%), Coal India (-1.24%), UPL (-1.09%) and ITC (-1.05%).
The Indian rupee weakened by 5 paise to trade at 68.87 against the US dollar in early trade today on sustained capital outflows as the greenback strengthened overseas.
However, a rise in shares of index heavyweight TCS capped Sensex losses, after the IIT major on Tuesday reported a 23.46 per cent year-on-year (YoY) growth in consolidated profit for June quarter at Rs. 7,340 crore. Sales for the quarter under review rose 16 per cent. It was the top gainer in the Sensex pack.
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