On Friday the Indian indices were trading lower dragged by financials and IT stocks. Index heavyweights HDFC twins, ICICI Bank, Axis Bank, and TCS contributed the most to the losses. Surge in global as well as domestic coronavirus cases also weighed on the sentiment.
A gauge of world stock markets was flat on Wednesday as U.S. data that raised concerns about a slowing economy was offset by a solid start to earnings season, while sterling was volatile as negotiations on a Brexit deal continued. European stocks pulled back slightly from their strongest closing high in more than a year as clashing headlines on Britain’s last-minute efforts to forge a divorce deal with the European Union left investors hanging on the outcome.
On Wednesday Asian markets sank as the possibility of a US-EU trade war shifted into focus after Washington’s tariffs threat, while traders are also spooked by Brexit uncertainty. The warning from Donald Trump’s administration that it would impose levies on more than $11 billion of European imports jolted investors, who had been enjoying a positive run of late thanks to optimism over China-US trade talks.
On Wednesday Asian markets were mixed with a strong lead from Wall Street offset by lingering concerns about the global economy, while oil prices extended gains after Russia reassured over its intention to cut output.
BSE Sensex and Nifty fell sharply on the back of negative global cues on growing fears about economic recession in the US. The S&P BSE Sensex fell as much as 1 per cent or 378 points to 37,786.98 and the NSE Nifty 50 Index dropped 1 per cent or 114 points to 11,352.20. Losses in early trading were led by Reliance Industries, Larsen & Toubro, HDFC, ICICI Bank, HDFC Bank, Infosys and Kotak Mahindra Bank.
On Friday Asian markets rose as US President Donald Trump struck an upbeat note on trade talks with China, while the pound held steady after British MPs voted to delay Brexit. While there remain some concerns about the global outlook, investor confidence has been supported by ongoing optimism that the world’s two biggest economies will eventually hammer out a deal to end their long-running trade row.
On Thursday the pound retreated from nine-month highs in Asia as investors are dogged by Brexit uncertainty, while equities were mixed as a healthy Wall Street lead was offset by more disappointing Chinese economic data. In another night of drama in Westminster, MPs voted against leaving the European Union without a deal, having rejected Prime Minister Theresa May’s agreement with the bloc for a second time.