Sensex, Nifty marginally down on weak Asian cues; banking stocks mixed, BoB plunges 10%, Dena Bank soars 20%
Sensex gained 159.93 points, or 0.42 percent in opening trade, but soon turned choppy falling 37.10 points, or 0.10 percent, to 37,548.41.
Mumbai: The benchmark indices turned volatile in early trade Tuesday on escalating global trade concerns after US President Donald Trump announced new tariffs on an additional $200 billion worth of imports from China.
The 30-share BSE index gained 159.93 points, or 0.42 percent in opening trade, but soon turned choppy falling 37.10 points, or 0.10 percent, to 37,548.41.
The gauge had lost 505.13 points in the previous session as rupee woes and trade war worries spooked investors despite the government announcing measures to stem a steep fall in the domestic currency.
The NSE Nifty, too, turned negative and was trading 10.60 points, or 0.09 percent, lower at 11,367.15.
Investors were cautious after US President Donald Trump Monday announced imposition of new tariffs on an additional $200 billion worth of imports from China, escalating the trade war with the Asian giant.
Alleging that China has been unwilling to change its unfair trade practices, Trump said the new additional tariff structure would be effective September 24 from when it would be at 10 percent until the year-end, but would increase to 25 percent level from 1 January.
Top losers include Vedanta, Tata Motors, PowerGrid, SBI, ICICI Bank, Wipro, Bharti Airtel, Infosys and HDFC falling up to 1.60 percent. While HUL, Asian Paints, Yes Bank, M&M, Sun Pharma, ONGC, Tata Steel and Hero MotoCorp were among the top gainers, rising up to 3.06 per cent.
Shares of Bank of Baroda (BoB) cracked nearly 10 percent, while Vijaya Bank rose over 3 percent, and Dena Bank rallied up to 20 percent after the government Monday said the three banks will be merged to create the country's third largest lender as part of efforts to revive credit and economic growth.
Domestic institutional investors (DIIs) sold shares worth Rs 180.36 crore, while foreign portfolio investors (FPIs) also offloaded shares to the tune of Rs 106.54 crore Monday, provisional data showed.
Elsewhere in Asia, Japan's Nikkei rose 1.07 percent, while Hong Kong's Hang Seng fell 0.79 percent in early deals. Shanghai Composite Index shed 0.12 percent.
The US Dow Jones Industrial Average ended 0.35 percent lower Monday.
BSE Midcap fell by 1.98 percent to 26,418.28 while BSE Smallcap declined by 1.79 percent to 29,562.60
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Taking its winning streak to the seventh session, equity benchmark Sensex rallied 460 points to finish at a fresh lifetime peak on Monday, tracking heavy buying in banking, IT and metal stocks
BSE Midcap saw a rise of 1.56 percent to end up 408.47 points higher at 26,556.43, while BSE Smallcap rose by 0.59 percent to end up 173.15 points higher at 29,755.41.