Sensex falls 65 points on global trade concerns, Nifty slips, too; Tata Steel, Vedanta, Bharti Airtel among major losers

Equity benchmark Sensex fell over 65 points in early trade on Tuesday in line with global market sell-offs as investors panicked after the US decision to impose tariffs on Argentina and Brazil. The fresh trade war tensions along with unabated foreign fund outflows weighed heavily on the market sentiments, traders said. At 10.30 AM, Sensex was 53.30 points down to 40,748.87 while the Nifty down 23.95 percent to 12,024.25 points. At 10.24 AM, the Sensex was down by 71 points to 40,731 while the Nifty 50 edged lower by 35 points at 12,014. Except for Nifty auto and FMCG, all sectoral indices at the National Stock Exchange were in the negative terrain with Nifty metal plunging by 1.76 percent, according to a PTI report. When the moarket opened, the 30-share index was trading 65.51 points, or 0.16 percent, lower at 40,736.66. Similarly, the Nifty slipped 23.75 points, or 0.20 percent to 12,024.45.

#CNBCTV18Market | Market opens flat on concerns over global trade tariffs by the US; Sensex & Nifty slip into the red immediately after opening; Biocon up 5%

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In the Sensex pack, Tata Steel emerged as the biggest loser with a slide of 1.95 percent, followed by Vedanta, IndusInd Bank, Bharti Airtel, ONGC and Axis Bank. However, Bajaj Auto, Tata Motors, SBI, Bajaj Finance and Maruti gained in the morning trade.

#CNBCTV18Market | 4 out of 5 gainers are autos this morning; YES BANK leads after slipping more than 5% yesterday pic.twitter.com/a9p36ufdWq

— CNBC-TV18 (@CNBCTV18Live) December 3, 2019

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On Monday, the Sensex closed marginally higher by 8.36 points or 0.02 percent at 40,802.17. On the other hand, the broader NSE Nifty settled 7.85 points or 0.07 percent down at 12,048.20. US President Donald Trump’s on Monday said he would re-impose steel and aluminium tariffs on Brazil and Argentina. He alleged that both the countries are manipulating their currencies and hurting American farmers. The US also threatened to impose tariffs of up to 100 percent on French goods in retaliation for digital services tax. These developments triggered fresh tension among investors, particularly on spillover concerns over the US-China trade war. Asian markets fell on Tuesday as global trade tensions surfaced again after the US decision to impose tariffs on the South American countries. Bourses in Hong Kong, Seoul, Shanghai and Tokyo were trading in negative zone. Stocks on Wall Street ended on a negative note on Monday. Foreign institutional investors sold shares worth Rs 1,731.33 crore in the capital market in the previous session, while domestic institutional investors bought equities worth 753.99 crore, data available with stock exchange showed. Rupee appreciates On the currency front, the rupee appreciated 8 paise against the US dollar to trade at 71.58 in early session.

#Rupee opens lower Vs yesterday's close pic.twitter.com/yl4lPwOMHo

— CNBC-TV18 (@CNBCTV18Live) December 3, 2019

The Indian rupee on Tuesday appreciated by 8 paise to 71.58 against the US dollar, as investors were hopeful that the Reserve Bank will go for another rate cut to boost economic growth. Forex traders said, the domestic unit is trading in a narrow range ahead of the RBI monetary policy decision on Thursday. At the interbank foreign exchange, the rupee opened at 71.66, then gained some momentum and touched a high of 71.58 against the dollar, showing a rise of 8 paise over its last close. The Indian rupee on Monday had closed at 71.66 against the US dollar. Bankers and experts believe the Reserve Bank may cut interest rates for the sixth straight time on December 5 to support growth that has continued to slip. The RBI has cut interest rates on every single occasion the monetary policy committee (MPC) has met since Shaktikanta Das took over as the Governor in last December. Traders said rupee is trading in a narrow range as market is awaiting fresh cues on the potential US-China trade deal. Asian stocks tumble Asian shares tumbled on Tuesday after US President Donald Trump stunned markets with tariffs against imports from Brazil and Argentina, recharging fears about global trade tensions, while weak US factory data added to the investor gloom, according to a PTI report. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3 percent, with Australian shares dropping more than 2 percent, on track for their worst day in two months. China’s blue-chip CSI300 index fell as much as 0.62% before clawing back to end the morning session flat. Japan’s Nikkeished 0.61 percent. In tweets on Monday, Trump said he would impose tariffs on steel and aluminium imports from Brazil and Argentina, attacking what he saw as both countries’ “massive devaluation of their currencies.” Contrary to his remarks, both Brazil and Argentina have been trying to strengthen their respective currencies against the dollar. Steven Daghlian, market analyst at CommSec in Sydney, said while the South American tariffs dominated market worries on Tuesday, China’s response to U.S. supporting for anti-government protesters in Hong Kong has also chilled sentiment. “Markets are extremely sensitive to any good or bad news on the U.S.-China dispute front, but also the U.S. relationship with other nations as well,” he said. China said on Monday US military ships and aircraft won’t be allowed to visit Hong Kong, and also announced sanctions against several U.S. non-government organisations for encouraging protesters to “engage in extremist, violent and criminal acts.” Worsening the mood, data from the Institute for Supply Management (ISM) showed the U.S. manufacturing sector contracted for a fourth straight month in November as new orders slid. --With inputs from agencies