Both domestic as well as global investors shivered on trade war woes as markets all across the world, including India, saw a major sell-off. The bench mark Nifty and Sensex dived more than 1 per cent following negative cues from global stocks on US-China trade war concerns and skyrocketing oil prices.
With such negative sentiments all around, domestic investors on Friday also became poorer by more than Rs 1.5 lakh crore. The Sensex ended at 32,597, down 410 points to close at five months low, while the broader Nifty fell below the 10,000 level for the first time this year, settling at 9,998, down 117 points. It was also trading much below the 200-day simple moving average of 10,172.7 as well.
Asia saw mayhem of sorts that saw indices plunging between two to four per cent from Shanghai and Hong Kong to Tokyo and Seoul. Shanghai market shed 3.4 per cent whereas in Tokyo, the Nikkei 225 fell 4.51 per cent, or 974.13 points, to
close at 20,617.86 after earlier dropping to its lowest levels in more than five months. The benchmark also fell 4.88 per cent for the week.
Seoul’s benchmark Kospi index lost 3.18 per cent to close at 2,416.76, as shares fell broadly. Technology names fell sharply, with heavyweight Samsung Electronics sinking 3.98 per cent and SK Hynix losing 6.21 per cent.
Greater China markets plunged in early trade, with Hong Kong’s Hang Seng Index sinking 3.16 per cent by 3:00 pm.
In India, other than IT index, all other sectoral indices ended in the red.
Metals, PSU Bank, Realty and Nifty Bank indices were hit very badly by falling over 2-3 per cent.
Market experts apprehend a further correction amid consolidation as the Nifty has broken 10,000 levels. At the same time, they feel that it should be used as a buying opportunity for investors who missed the bus earlier.
Deven Choksey of KR Choksey Securities, however, said, as far as long-term trade is concerned, technically in the market anything can be possible. Capitulation with multiple headwinds can pull the market down to 9,750 on the Nifty, but fundamentals are not supporting the fall now, he said.
The markets movement took its reverse turn when US President Donald Trump signed a Presidential memorandum that could impose tariffs on up to $60 billion of Chinese goods, including steel, although the measures have a 30-day consultation period. In retaliation, China unveiled plans to impose tariffs on up to $3 billion of US imports.
As far as other progressive markets are concerned, MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 2.4 per cent, tracking a huge overnight fall in the US markets. Public sector banks were the biggest drag in this drastic fall, with the Nifty Bank index hitting its lowest since September 2017. Axis Bank also dropped 3.85 per cent, while ill-fated and Nirav Modi fraud-linked bank Punjab National Bank fell 3.73 per cent. Besides these prominent lenders, metal stocks were also down with the Nifty metal index declining over 3 per cent to its lowest since September 25, 2017.