Here’s why Sensex, Nifty fell nearly 1% today
New Delhi: The headline equity indices Sensex and Nifty dropped nearly 1 per cent on Monday with India Vix soaring more than 10 per cent. Indian share markets traded in red after opening lower today following the renewed trade war tensions between the United States and China. Earlier yesterday, US President Donald Trump threatened to raise tariffs on Chinese exports to the US.
“For 10 months, China has been paying Tariffs to the USA of 25 per cent on 50 Billion Dollars of High Tech, and 10 per cent on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10 per cent will go up to 25 per cent on Friday. 325 Billions Dollars of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25 per cent. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!,” Donald Trump said this in two different tweets.
The benchmark Sensex had crashed as much as 453 points in the intraday trade before closing down 362.92 points or 0.93 per cent at 38,600.34 and NSE Nifty had slipped to a low of 11,571.35 before concluding 114.00 points or 0.97 per cent lower at 11,598.25.
Shares of ITC, TCS and Bharti Airtel were the only notable gainers among the components of BSE Sensex today, while, shares of Yes Bank, Tata Motors, Bajaj Finance, Tata Steel, HDFC, IndusInd Bank, HDFC Bank, Reliance Industries, Hero MotoCorp, Asian Paints, Axis Bank, HUL, Mahindra & Mahindra, Bajaj Auto and NTPC were the major laggards diving more than 1 per cent each.
Shares of heavyweight companies HDFC, HDFC Bank and Reliance Industries were the major negative point contributors to the Sensex today. All the sectoral indices of NSE closed in red barring Nifty IT with Nifty Media and Nifty Metal leading the losses.
