Markets

Trade war concerns drag Sensex, Nifty

A poster of bear and bull in south Mumbai seems to reflect the mood of the stock markets.

A poster of bear and bull in south Mumbai seems to reflect the mood of the stock markets.   | Photo Credit: Paul Noronha

Beijing’s retaliation with 25% tariff on 106 U.S. products sees indices slipping up to 1.14%

Fresh concerns over a trade war between the U.S. and China pushed world markets in a tailspin on Wednesday with the Indian benchmark indices shedding more than 1% each even after opening on a strong note.

 

Close on the heels of the U.S. announcing a 25% levy on a long list of Chinese goods, China retaliated in quick time by imposing a 25% import tariff on 106 products from the U.S., which made world markets jittery with fears of a full-blown trade war.

The 30-share Sensex, which touched a high of 33,505.53 during the day, ended at 33019.07, down 351.56 points or 1.05%. The broader Nifty closed 116.60 points or 1.14% lower at 10,128.40.

“Investors grew wary of renewed trade war fears between the U.S. and China, and adopted a note of caution,” said Karthikraj Lakshmanan, senior fund manager-Equities, BNP Paribas Mutual Fund, while adding that Indian indices mirrored the overall global fall.

Elsewhere in Asia, Hang Seng was down more than 650 points while South Korea’s Kospi and Taiwan’s TSEC also ended in the red. Incidentally, the Dow Jones lost over 300 points in the first hour of the trading session on Wednesday.

Among the Sensex pack, 25 declined with Yes Bank, Kotak Mahindra Bank, L&T, Axis Bank and Tata Steel all losing more than 2% each. The overall breadth was was also weak with almost 1,500 stocks in the red as against 1,157 gainers.

Weak listings

Shares of ICICI Securities made a weak debut on the bourses on Wednesday, dipping below the issue price on the first day of listing as investors remained cautious after the public issue of the company had failed to get fully subscribed.

 

On the BSE, the shares opened at ₹431.10, much below the issue price of ₹520. During the day, it touched a high of ₹462.70, before ending the day at ₹445.05, 14.41% lower than its issue price.

The market capitalisation of the financial services entity was pegged at ₹14,336.90 crore, a tad below that of Motilal Oswal Financial Services, which is currently valued at ₹14,617.89 crore. Edelweiss Financial Services and IIFL Holdings also have a higher market capitalisation with both valued at excess of ₹22,000 crore each.

Incidentally, market participants were expecting a weak listing for the company after the public issue was subscribed only 0.78 times. However, most of the brokerages had recommended subscribing to the offer with a “long-term” investment horizon.

On the National Stock Exchange (NSE), shares of ICICI Securities closed at ₹441.50 - 15.10% lower than the issue price. During the day, it touched a low of ₹435.

The day also saw the listing of government-owned Mishra Dhatu Nigam, which managed to close only marginally above its issue price. On the NSE, it closed at ₹90.10, only a tad higher than its issue price of ₹90. On the BSE, the company’s shares closed at ₹90, after touching a high of ₹90.90 during the day.

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Printable version | Mar 30, 2020 4:35:00 PM | https://www.thehindu.com/business/markets/trade-war-concerns-drag-sensex-nifty/article23437067.ece

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