Sensex, Nifty plunge 1% on global cues as investors wary of Trump fiscal plan
Indian share markets opened lower tracking weak Asia and Wall Street as investors are wary of a faster growth prospect in the United States in absence of a big fiscal stimulus from President Donald Trump, political uncertainties in Europe and a possible reversal of the easy money policy by the European Central Bank.business Updated: Mar 22, 2017 16:11 IST
Indian share markets plunged 1% on Wednesday tracking weak Asia and Wall Street as investors are wary of a faster growth prospect in the United States in absence of a big fiscal stimulus from President Donald Trump, political uncertainties in Europe and a possible reversal of the easy money policy by the European Central Bank.
The 30-share benchmark Sensex opened down and fell as much as 348 points or mor than 1.2% to 29137.48. The benchmark closed 318 points or 1.1% down at 29,167.68. The Nifty also fell 1% to 9,030.45, tracking Asian and European markets.
Metals, oil and auto stocks were down as the commodity rally halted on fears the US growth prospects now looks dim if Trump fails to come up with an expansionary fiscal policy. Pharma stocks rebounded after Tuesday’s fall.
Lupin and Wipro led the Sensex chart gaining 0.8% each while Cipla was up 0.5%, Sun Pharma 0.3% and Dr Reddy’s 0.1%.
Bharti Airtel was down 3.2% while Tata Motors fell 2.8%, ITC 2.75%, ICICI Bank 2.4% and Bajaj Auto 2%.
On Wednesday, Asian markets traded in the red following a sell-off in the Wall Street on increasing concerns that Trump may not be able to roll out an expansive fiscal policy especially sharp tax cuts in near term. Dow Jones Industrial Average and the S&P 500 fell more than 1% on Tuesday, the biggest fall since Trump’s surprise election win in November 2016.
The MSCI’s broadest index of Asia-Pacific shares outside Japan was down as much as fell 1.4%. Nikkei was down 2.1% while Hang Seng fell 1.1%, Kospi 0.5%, Strait Times 1.3% and Shanghai 0.5% in early trade.
The dollar fell to four-month low against the yen and down against the euro as well as Federal Reserve officials have been indicating to a gradual interest rate hikes in 2017, contrary to what many investors were expecting before the policy review on March 15.
The dollar index against a basket of six major currencies hovered around 99.707 after touching 99.642 last night.
The possibility of anti-EU votary Marine Le Pen being defeated in the French presidential elections and expectations of ECB unwinding its quantitative easing is helping the euro to appreciate. The euro rose above $1.080 for the first time since February after centrist Emmanuel Macron’s performance in a debate put him before Le Pen at the French presidency race.
First Published: Mar 22, 2017 07:41 IST