Additionally, the US Treasury Department is planning to heighten scrutiny of Chinese investments in sensitive US industries under an emergency law, putting Washington’s trade war with Beijing on a potentially irreversible course, said a Bloomberg report.
The S&P BSE Sensex plunged over 200 points on Monday weighed down by worries over a worsening trade dispute between the United States and other major economies. The Nifty50 failed to hold on to crucial support placed at 10,770-10,800.
The Wall Street Journal said U.S. President Donald Trump planned to bar many Chinese companies from investing in U.S. technology firms and block additional technology exports to China, said a Reuters report.
A senior European Commission official said on Saturday that the European Union would respond to any U.S. move to raise tariffs on cars made in the bloc, it said. Investors and traders are worried that threats of higher U.S. tariffs and retaliatory measures could derail a rare period of synchronised global growth.
Additionally, the US Treasury Department is planning to heighten scrutiny of Chinese investments in sensitive US industries under an emergency law, putting Washington’s trade war with Beijing on a potentially irreversible course, said a Bloomberg report.
“Sentiment across Asia was negative after the US Treasury department announced its decision to scrutinize Chinese investments in sensitive US industries concerned with economic and national security. This has heightened global tensions as the two powers play a game of one up-manship, pressurising markets across the globe,” Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund told Moneycontrol.
“Additionally, the India VIX was up by 4 percent, indicating an increase in volatility in the markets. Barring the IT index, all other sectoral indices on the National Stock Exchange, closed the day with losses,” he said.
The Nifty50 ends the first session of the expiry week on a weak note led by losses in ICICI Bank, Tata Motors, and L&T. The market breadth was firmly in favour of declines with advance-decline ratio placed at 1:3.
The S&P BSE Sensex closed 219 points lower or 0.6 percent while the Nifty50 ended 59 points down at 10,762.
Sectorally, the S&P BSE IT index closed 0.85 percent higher while most of the other sectors closed in red.
On the losing front, the S&P BSE PSU Index slipped 1.7 percent, followed by the S&P BSE oil & gas index which was down 1.5 percent, and the S&P BSE Auto index ended 1.5 percent lower.
The S&P BSE Midcap index closed 0.8 percent down while the S&P BSE Smallcap index ended 0.89 percent lower.
Top Sensex losers include companies like Tata Motors (down 5.9 percent), ICICI Bank (down 3.7 percent), Coal India (down 2.2 percent), and L&T (down 2.05 percent).
Top Sensex gainers include companies like Infosys (up 2 percent), Vedanta (up 0.7 percent), Kotak Bank (up 0.7 percent), and IndusInd Bank (up 0.65 percent).
Stocks in news:
Tata Motors’ shares fell 5.9 percent as caution gripped investors due to auto tariff threat by US as well as weak JLR trends as well. Multiple brokerages see lack of catalysts in the short term on the back of weak demand and volume growth.
Shares of PNB Housing Finance soared 14 percent on reports that HDFC and Kotak Mahindra Bank were eyeing controlling stake in the firm. According to a report on The Economic Times, both the lenders were competing for a controlling stake in PNB Housing Finance in a bid to get better access to mortgage market.
Shares of ICICI Bank lost around 3.7 percent as investors turned cautious of another whistleblower complaint against it. The stock has touched an intraday high of Rs 300.20 and an intraday low of Rs 295.45.
Infosys on Monday surged over 2 percent as investors cheered positive commentary from its management at the annual general meeting (AGM) held on Saturday. The IT bellwether’s non-executive Chairman Nandan Nilekani said on June 23 that India’s second largest software exporter was ready to get back to faster growth as the focus shifts to execution of previously laid out plans.
Global investment bank, Goldman Sachs, has upgraded its call on HDFC Bank from Hold to ‘Buy’ and hiked its target price to Rs 2,188 from Rs 1,944. The hiked target price implies an upside of 10 percent on the stock. Goldman Sachs expects improvement in demand drivers from retail as well as non-retail businesses. The stock closed 0.58% higher.
Shares of Aditya Birla Group-owned telecom company Idea Cellular Ltd fall 7.1 percent, lowest since June 6, on reports that the mega-merger deal of Idea Cellular and Vodafone India may not meet the expected June 30 timeline. The telecom department is looking to raise a fresh demand of around Rs 4,700 crore, a PTI report said quoting source. The demand will be raised from Vodafone India before its merger with Idea Cellular.
The government today sounded evasive about the media reports that it was planning to ask LIC to take a controlling stake in the crippled IDBI Bank, saying the boards of the respective entities will take a call on the matter. The stock closed 1.4 percent lower.
In other news/Global Update:
Markets in Asia traded mostly lower as investors were cautious about trade war fears between US and China.
Meanwhile, in Europe, markets traded lower on possibilities of further tariffs being imposed by the US, particularly on EU-imported cars. The Stoxx 600 was 0.52 percent lower with every sector in the red.
