The S&P BSE Midcap index slid 0.18 percent, and the S&P BSE Smallcap index lost 0.77 percent.
India market which managed to recoup morning losses but lost momentum in the second half of the trading session and closed near its crucial support placed at 10,800 on Monday.
Weak global cues weighed on sentiment and Nifty50 witnessed sustained selling pressure since morning. The opening level and the intraday high level was almost same which resulted in a ‘Bearish Belt Hold’ kind of pattern on daily charts.
Global stocks slid after US President Donald Trump announced tariffs on Chinese goods and Beijing responded with similar measures in an escalating trade dispute.
“Risk appetite in the global markets abated after US President Donald Trump gave a fillip to trade tensions by imposing a 25 percent tariff on a list of 818 items of Chinese goods worth around $34 billion,” Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
“Beijing immediately responded with its own set of tariffs on US goods, making this a game of one up-manship. Benchmark indices traded weak to finally close the day marginally in the red,” he said.
Sectoral performance on the National Stock Exchange (NSE) was mixed. While the auto, healthcare and private banking indices eked out marginal gains, the metals and IT indices lost 1.78 percent and 0.77 percent, respectively.
The S&P BSE Midcap index slid 0.18 percent, and the S&P BSE Smallcap index lost 0.77 percent.
Top Sensex gainers include companies like ICICI Bank (up 3.6 percent), Tata Motors (up 1.8 percent), Dr Reddy’s Laboratories (up 1.2 percent), Bajaj Auto (up 0.98 percent) etc. among others.
Top Sensex losers include companies like Bharti Airtel (down 1.6 percent), Coal India (down 1.59 percent), Tata Steel (down 1.2 percent), Axis Bank (down 1.1 percent) etc. among others.
Stocks in news:
OMC stocks remained in focus in otherwise subdued market after Brent crude prices fell in the international market fall below $73/bbl. Shares of oil marketing companies (OMCs) like Indian Oil Corporation (IOCL) rose 3.6 percent, Hindustan Petroleum Corporation (HPCL) closed 5.1 percent higher and Bharat Petroleum Corporation (BPCL) rose 2.6 percent.
Metal stocks were the biggest losers in the afternoon trade as well with Tata Steel, Jindal Steel & Power, JSW Steel, Hindalco Industries, Vedanta, Welspun Corp and Hindustan Zinc being the top losers weighed down by rise in trade war fears.
Shares of ICICI Bank soared 3.6 percent as investors cheered the development around the change of guard at the management level. ICICI Bank is discussing a rejig of its top management, a move that could make ICICI Prudential Life CEO Sandeep Bakhshi the group’s interim chief, The Economic Times reports.
HT Media gained nearly 2 percent after Koovs Plc has signed 2-year ad-for-equity pact with HT Media for 24 million pound, reports CNBC-TV18 quoting Cogencis.
PNC Infratech share price fell nearly 4 percent after the UP government has decided to reinvite bids for Purvanchal Expressway and cancelled the company’s Rs 1,738.44 crore offer made earlier.
Adani Green Energy closed 5 percent higher post listing. Last year, Adani Enterprises demerged its renewable energy business into associate company Adani Green Energy, to simplify the business structure.
Tata Consultancy Services (TCS) continued to trade at fresh record high of Rs 1870 after it announced a buyback of up to Rs 16,000 crore on Friday which most brokerages think was a bit lower than expectations and is slightly negative on earnings per share (EPS). However, towards the close it lost momentum and ended 0.58 percent lower.
In other news/Global Update:
Global markets traded lower after the escalated trade war tensions between world’s largest two economies US and China. France’s CAC and Germany’s DAX were down nearly a percent each at the time of writing this article.
Among Asian peers, Japan’s Nikkei, China’s Shanghai Composite and South Korea’s Kospi fell 0.7-1.1 percent.
Brent crude futures rebounded to trade above $74 a barrel, up a percent amid likely increase in output in the upcoming OPEC and its allies meeting later in the week. Before the recovery, it was down more than a percent to below $73 a barrel in morning.
