Sensex hits 4-month low, crashes 471 points amid heavy sell-off as Trump triggers trade war

By: | Updated: March 23, 2018 9:33 AM

Indian stock markets faced a knee-jerk reaction in the morning deals on Friday after the US President Donald Trump imposed tariffs on imports from mainland China steering a fear of a downturn in global economy resulting in a panic among the investors.

The S&P BSE Sensex extended losses plummeting about 471.44 points to a 4-month low of 32,534.83 on Friday. (Image: Reuters)

Indian stock markets faced a knee-jerk reaction in the morning deals on Friday after the US President Donald Trump imposed tariffs on imports from mainland China steering a fear of a downturn in global economy resulting in a panic among the investors. A region-wide sell-off was seen in the major Asian stock markets since early morning today, following which the benchmark Sensex crashed as much as 355 hitting a fresh 4-month low to open below 33,000-mark whereas NSE Nifty tumbled on the same lines diving about 146 points slipping below 10,000-level.

Almost all the components of BSE Sensex hovered into negative territory on Friday with shares of heavyweight companies such as Reliance Industries, ICICI Bank, HDFC Bank, Infosys, HDFC, Tata Steel and ITC. A similar panic was witnessed amid the regional Asian stock markets on the worries of Donald Trump hiking the tariffs. Among the neighbourhood markets, Japanese stock market was the worst hit followed by Hong Kong, China and South Korea. Within minutes of the opening of Indian equity markets, the S&P BSE Sensex extended losses plummeting about 471.44 points to a 4-month low of 32,534.83 on Friday.

By late morning in Japan, the benchmark Nikkei 225 index was down 3.5% at 20,827.92, South Korea’s Kospi tumbled 2.3% to 2,438.03, Hong Kong’s Hang Seng lost 3.2% to 30,090.32 and China’s Shanghai Composite sank 2.7% to 3,169.19 while Australia’s S&P/ASX 200 skidded 1.9% to 5,824.50.

Many big US companies have built complicated supply chains that stretch across the Pacific Ocean. A trade war could disrupt the back-and-forth flow of parts, forcing factories to slow or halt production, Associated Press said in a report.

US stocks slumped on Thursday as President Donald Trump’s move to impose tariffs on up to $60 billion of Chinese imports drove fears about the impact on the global economy, fueling the biggest percentage declines in Wall Street’s three major indexes since they entered correction territory six weeks ago, Reuters said in a report. The Dow Jones Industrial Average fell 724.42 points, or 2.93 percent, to 23,957.89, the S&P 500 lost 68.24 points, or 2.52 percent, to 2,643.69, and the Nasdaq Composite dropped 178.61 points, or 2.43 percent, to 7,166.

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