The domestic stock markets closed in deep red on Monday after metal, banking, oil & gas and auto stocks slumped on US president Trump induced fears of a global trade war. The 30-share Sensex shed 300 points to close at 33,746.
The domestic stock markets closed in deep red on Monday after metal, banking, oil & gas and auto stocks slumped on US president Trump induced fears of a global trade war. The 30-share Sensex shed 300 points to close at 33,746 and the broader 50 share index Nifty closed at 10,358, after falling by more than 70 points. During the day, the 30-share barometer fell to a low of 33,653.41 in intra-day trade. Shares of tata Motors, Tata Steel, Bajaj Auto plunged in the day. Shares of Tata motors emerged as the biggest loser, shedding more than 5% in the day. The sensex had last closed at this level on February 20th. In the Nifty-50, 42 shares registered declines, while only 8 scrips ended the day in green.
Shares of Tata Motors, Hindalco, Aurobindo Pharma, Tata Steel and Reliance were among the biggest losers in the Nifty plunging by more than 2% each. During the day, market sentiment was further dampened as India’s services sector contracted in February and fell to a six-month low, as the Nikkei PMI came in at 47.8 in February, as compared to 51.7 in January, as new work orders suffered amid weak underlying demand conditions. According to a PTI report, weakening trend in Asian bourses as the fallout from Trump’s steel and aluminium tariffs continued to spook investors and dampen the market sentiment.
Taking stock of Monday’s trading in the stock markets, Angel Broking said that today’s gap down opening along with the immediate correction was clearly a catch up move as the markets remained shut on Friday due to the ‘Holi’ festival. “We had to somehow make that adjustment to be in-line with the global peers. Barring some recovery in the antepenultimate hour, the index traded with negative bias to eventually close tad above the 10,350 mark,” the firm noted.
Even as the global markets feel the jolt of US President Donald Trump’s tariff hike on steel and aluminium which may spark of off a trade war, Commerce Secretary in the United States, Wilbur Ross clarified on Monday, that the government is not considering any exemptions. Japan’s Nikkei reacted sharply during the day and dropped to a level last seen in mid-October, as the index fell for a fourth day on fears of a global trade war which may hurt steelmakers, automakers and shipping companies.
Earlier last week, Trump said that announced import duties hike and said that imported steel would attract 25 per cent import duty and 10 percent duty will apply on aluminum to protect domestic producers, which drew strong criticism from its trading partners.