Mumbai: Asian markets were seen bleeding some money after Donald Trump threatened to increase tariffs on USD 200 billion Chinese goods at the end of the week in a bid to give a push to close trade talks between US and China.
The Indian equity benchmarks too moved in sync with their Asian peers. In early trades, BSE Sensex showed a gap down opening of around 400 points settling to around 38,671 i.e. 291 points down at the time of writing.
On the other side of the coin, broader index – NSE Nifty was seen trading at 11,618 down eight-tenths of a percent which breached its psychological level of 11,600 for a while, recovering shortly.
Reacting to the news, Chinese bourses sank led by the Shanghai Composite Index that plunged over 5 per cent. Other indices in Tokyo and Seoul were also trading in the red.
Sectorally, all the sectors at NSE were seen trading in red, with highest bleeding seen at NSE Metal (-2.42%), NSE PSU Banks (-1.16%), NSE Financial Services (-0.99%) and NSE Pvt Banks (-0.98%).
Top losers among stocks being: Tata Motors (-4.75%), Hindalco (-3.51%), JSW Steel (-3.31%) and Yes Bank (-3.07%).
Gainers among the losing pack are: BPCL, WIPRO, Tech Mahindra with gains of 1.41%, 0.76% and 0.59% respectively.
It may be advised on account of uncertainties, long positions across the board may be avoided. The recovery does indicate that the knee jerk reaction has been stabilised in the intraday trade so far but the clouds of uncertainty still loom over the markets.
(NISM Research Analyst registration number: NISM-201900044610)