Sensex sinks 350 points, Nifty closes near 10,100 as trade war escalates
Indian equity benchmark BSE Sensex snapped its two-day losing streak on Wednesday, as deepening tensions between US and China led to a sell-off in domestic equities.
At close, the BSE Sensex had shed 350 points or 1.05% to settle at 33,019.07, while the wider NSE Nifty lost 1.14% or 116.60 points to end at 10,128.40.
The BSE Sensex opened positive and advanced to a high of 33,505.53 but succumbed to a sudden sell-off in the afternoon, hitting a low of 32,972.56. This is the benchmark’s biggest fall since March 23, when it had lost 409.73 points.
The US announced $50 billion worth of tariffs on Chinese imports, to which China retaliated by imposing tariffs of an equal amount on 106 US goods. Intensifying trade war concerns dampened sentiment in the Asian markets.
The six-member Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel, is also scheduled for a two-day meet over April 4 and 5.
Heavy selling pressure was witnessed in consumer durables, capital goods, banking and oil and gas sectors.
Losses on the BSE Sensex were led by Tata Steel, Yes Bank, L&T, NTPC, IndusInd Bank, Axis Bank and Kotak Bank, with losses of up to 3.51%.
All sectoral indices, except BSE auto, ended in the negative zone. Metals, consumer durables, basic materials, capital goods, banks, and financial stocks lost the most.
On the other hand, Tata Motors, Hindustan Unilever, Adani Ports, Hero Motocorp, and ITC were the only stocks which settled in the green today, with Tata Motors gaining 3.48%.
Meanwhile, on a net basis, domestic institutional investors (DIIs) bought shares worth Rs 479.18 crore, while foreign portfolio investors (FPIs) sold shares worth Rs 376.51 crore on Tuesday, provisional data showed.