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Sensex plummets on rising trade tensions

THE ASIAN AGE.
Published : Dec 7, 2018, 1:29 am IST
Updated : Dec 7, 2018, 1:37 am IST

Most of the index heavyweights ended the day with deep cuts with Maruti and Tata Motors tanking 4.63 per cent and 4.02 per cent respectively.

The Sensex plunged 572.28 points or 1.59 per cent to end the session at 35,312.13 while the Nifty closed the session at 10,601.15, down 181.75 points or 1.69 per cent.
 The Sensex plunged 572.28 points or 1.59 per cent to end the session at 35,312.13 while the Nifty closed the session at 10,601.15, down 181.75 points or 1.69 per cent.

MUMBAI: The Indian equities plunged on Thursday amidst a rout in global equities after the arrest of a senior executive of Chinese tech giant Huawei in Canada for extradition to US triggered fresh concerns regarding a renewal of trade tension between US and China.

Rating agency Fitch’s forecast about rupee hitting 75 a dollar by 2019 end and the likely production cut in Opec meeting, which started on Thursday also weighed on sentiments.  

The Sensex plunged 572.28 points or 1.59 per cent to end the session at 35,312.13 while the Nifty closed the session at 10,601.15, down 181.75 points or 1.69 per cent.

According to experts, investors remained cautious ahead of the state assembly poll results next week that is likely to set the tone for the 2019 Lok Sabha elections.   

“Opec members are inclined for a production cut however there is no consensus on actual quantum. Opec needs to bring Russia on board for a production cut policy and 2-day meeting starting from today will give fresh direction to crude oil,” said Abhishek Bansal, chairman of Abans Group.

The weakness in the domestic equities also impacted the sentiments in the foreign exchange market with the rupee again breaching the 71 level mark against the dollar in the intra-day trade. The rupee finally ended the session at 70.90 a dollar after hitting a low of 71.14 in the intra-day trade. “The widening of the current account deficit amidst tighter global financing conditions should put downward pressure on the currency,” rating agency Fitch said on Thursday.

Most of the index heavyweights ended the day with deep cuts with Maruti and Tata Motors tanking 4.63 per cent and 4.02 per cent respectively.

Meanwhile, the shares of Yes Bank, Adani Ports, Reliance, Bharti Airtel, Asian Paints and ONGC suffered losses in the range of 2-3 per cent.

Tags: huawei, sensex, nifty