INSUBCONTINENT EXCLUSIVE:
MUMBAI: An escalating trade dispute between the US and China returned to haunt financial markets across the world with Indian stocks and
Asian and European stocks fell after US President Donald Trump threatened to impose a fresh round of tariffs on Chinese goods in the latest
round of trade war rhetoric between the global economic giants.
Foreign portfolio investors dumped shares worth almost 1,325 crore on
Sensex fell 261.52 points, or 0.74per cent, to close at 35,286.74 while Nifty dropped 89.40 points, or 0.83per cent, to close at 10,710.45.
The rupee lost 0.5per cent, or 39 paise, against the dollar amid a rush for safe-haven US-backed assets
The local currency closed at 68.38 a dollar compared with 67.99 a day earlier
weakness may remain unless the trade war fears ease, he said
The decline in local stocks, however, was less sharp compared to other Asian markets
were down 1-2 per cent at the time of going to print on Tuesday evening
Agrawal, joint managing director, Motilal Oswal Financial Services.
US president Trump said the country would consider imposing a 10 per
cent tariff on $200 billion of Chinese goods
703 stocks gained, an indication of the outstretched weakness in the broader market
Metal stocks like Jindal Steel, Hindalco, Vedanta and SAIL slipped over 2-4per cent led by fall in base metal prices on the London Metal
Exchange.
Fund managers and analysts said India could be less impacted by the trade dispute but its stock market will not be insulated if
The drop in oil prices amid the conflict also came as a relief to investors
Brent oil on Tuesday fell 0.6 per cent to $74.87 a barrel.
The market is closely watching the outcome of the meeting between the
Organization of the Petroleum Exporting Countries (Opec) and a group of non-cartel countries later this week.
Hopes are high that they would
decide to increase production but the extent of the output boost would determine the sentiment in the global financial markets
For India, a decline in crude prices will be a key sentiment booster as lower oil prices and strong monsoon are expected to ease
