Connect with us

Business

Sensex drops over 100 points on weak global cues, rising crude prices

Published

on

Sensex

Mumbai | The BSE benchmark Sensex dropped over 100 points in early trade Tuesday amid mixed cues from other Asian markets, rising crude prices, weak rupee and heavy selling by domestic institutional investors.

The 30-share index was trading 133.27 points, or 0.37 percent, lower at 36,107.73 at 0945 hrs. The index had closed with a marginal gain of 47 points at 36,241 Monday. In similar movement, the NSE Nifty was trading 31.20 points, or 0.29 percent, down at 10,852.55. Investors turned cautious after the euphoria over US-China trade settled, and uncertainty over negotiations between the two countries during the next 90 days rose.

The White House announced after talks between President Donald Trump and Chinese counterpart Xi Jinping on Saturday that a tariff hike that had been due on January 1 would be suspended for three months while the two sides negotiate a resolution.

US President Donald Trump and his Chinese counterpart Xi Jinping agreed to a truce and halted their tariff war at the G20 meet. Market  is also in wait-and-watch mode ahead of the outcome of the Reserve Bank of India’s fifth bimonthly monetary policy meeting for 2018-19.

Top losers include HDFC, M&M, NTPC, Kotak Bank, HDFC Bank, Adani Ports, PowerGrid, Bharti Airtel and Reliance Industries, falling up to 2 percent. While, gainers include Yes Bank, ONGC, Hero MotoCorp, Sun Pharma, Bajaj Auto, Tata Motors, Coal India, Infosys, TCS, ICICI Bank and Asian Paints, rising up to 2 percent.

On a net basis, foreign portfolio investors (FPIs) bought shares worth Rs 293.12 crore Monday, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 806.45 crore, provisional data available with BSE showed. The rupee, meanwhile, depreciated 9 paise to 70.55 against the US dollar in early trade at the interbank foreign exchange, amid strengthening of the US dollar and rise in crude oil prices.

Brent crude, the international benchmark, was trading 1 percent up at USD 62.31 per barrel. Elsewhere in Asia, Hong Kong’s Hang Seng was down 0.26 percent, Japan’s Nikkei fell 0.97 percent and Shanghai Composite Index edged higher by 0.04 percent in early trade.

On Wall Street, the Dow Jones Industrial Average index rose 287.97 points, or 1.13 per cent, to 25,826.43 on Monday.

Business

Canada defends Huawei arrest after markets wobble

Published

on

By

Huawei

Montreal | Canada on Thursday defended its arrest of an executive of Chinese tech giant Huawei on a US extradition request after markets wobbled on fears of fresh friction between Washington and Beijing. With China demanding the release of Huawei chief financial officer Meng Wanzhou, Canadian Prime Minister Justin Trudeau said officers who arrested her on Saturday as she was changing planes in Vancouver had acted on their own.
“I can assure everyone that we are a country (with) an independent judiciary,” Trudeau told a tech conference in Montreal.  “And they took this decision without any political involvement or interference.” Citing a court-ordered publication ban sought by Meng, Trudeau declined to comment further on the case, which according to a US senator was brought over Huawei’s activities in Iran.

The arrest took place on the same day that the US and Chinese presidents, Donald Trump and Xi Jinping, had met for a long-awaited summit in Buenos Aires and spoken of easing an intensifying trade row. Markets were chaotic over news of the arrest. On Wall Street, the broad-based S&P Index closed down 0.31 per cent after making up steep early losses. “The concept of getting a quick resolution is fading,” Art Hogan, chief market strategist at B. Riley FBR, said of the trade tensions between the world’s two largest economies.

China said that Meng — the daughter of Huawei founder Ren Zhengfei, a former engineer in China’s People’s Liberation Army — had violated no laws in either Canada or the United States. “We have made solemn representations to Canada and the US, demanding that both parties immediately clarify the reasons for the detention, and immediately release the detainee to protect the person’s legal rights,” Chinese foreign ministry spokesman Geng Shuang said in Beijing. Huawei also said in a statement that it was compliant with “all applicable laws and regulations where it operates.”

Huawei’s affordable smartphones have made strong inroads in the developing world, but the company has faced repeated setbacks in major Western economies over security concerns. Trump’s national security adviser, John Bolton, acknowledged that he knew that Canada was planning to arrest Meng on Saturday just as all eyes were on the summit in Buenos Aires. “I knew in advance. This is something that we get from the Justice Department,” Bolton told National Public Radio. He said he was not sure whether Trump — who had trumpeted his summit with Xi as “amazing and productive” as he flew back to Washington — was also aware. “These kinds of things happen with some frequency. We certainly don’t inform the president on every one of them,” he said of the arrest.

Bolton also declined to discuss specifics over Meng’s arrest, saying it was a matter for law enforcement. “But we’ve had enormous concerns for years,” Bolton said, “about the practice of Chinese firms to use stolen American intellectual property, to engage in forced technology transfers, and to be used as arms of the Chinese government’s objectives in terms of information technology in particular. So not respecting this particular arrest, but Huawei is one company we’ve been concerned about,” he said.

Senator Ben Sasse earlier linked Meng’s arrest to US sanctions on Iran, which Trump is trying to squeeze economically after withdrawing from a denuclearisation deal. CNN, quoting an unnamed official, said that the United States saw the arrest as providing leverage in trade talks. But White House trade advisor Peter Navarro denied Meng’s detention was linked to the US-China dialogue. “It’s pretty simple,” he told CNN, “The two issues are totally separate — the trade negotiations and this arrest. The Justice Department acts on an independent track. The coincidence of the arrest happening in the same time frame was just that.”

Canada was bracing for a fallout in relations with China, which has been increasingly willing to punish countries it sees as countering its interests. Canada’s cyber security chief said the country could face retaliatory cyber attacks. “I think one of the key things is that we always have to be resilient no matter what the possible trigger could be,” Scott Jones, director of the Canadian Centre for Cyber Security, told a press conference.

Meng is scheduled to appear in court on Friday for a bail hearing. Trump and Xi, who were in Argentina for a summit of the Group of 20 major economies, had agreed to set up negotiations to discuss US concerns over China’s trade barriers. In turn, Trump agreed to hold off on raising tariffs from 10 to 25 per cent on USD 200 billion worth of Chinese goods starting in the new year.

Continue Reading

Business

Sensex dives 572 points as Huawei arrest roils global markets

Published

on

By

Huawei

Mumbai | Benchmark Sensex buckled under selling pressure for the third straight day on Thursday, in step with a global sell-off triggered by the arrest of a top executive of Chinese telecom giant Huawei in Canada.

Asian markets nosedived after Huawei CFO Meng Wanzhou, who is also the company founder’s daughter, was arrested in Canada for extradition to the US for suspected Iran sanctions violations, dealing another blow to US-China relations.

The BSE Sensex plunged 572.28 points, or 1.59 per cent, to close at 35,312.13. Similarly, the broader NSE Nifty fell 181.75 points, or 1.69 per cent, to 10,601.15. All sectoral indices on the BSE and NSE ended in the red, led by metal, oil and gas, pharma and financial stocks. Sun Pharma was the lone gainer in the 30-share Sensex pack. A weakening rupee, which plunged below the 71 per dollar mark intra-day, and fresh foreign fund outflows further dented investor sentiment, analysts said.

“Capital markets had a rough day, as they are trying to navigate too many data points such as re-emergence of sharp weakness in Indian rupee, upcoming OPEC meeting outcome in terms of production cut, and upcoming results of five state assembly elections. The nervousness is quite evident, as there is sharp sell-off across the industries, and especially in those stocks where there are corporate governance concerns,” said Jagannadham Thunuguntla, Senior VP and Head of Research Wealth), Centrum Broking Limited.

Top index losers included Maruti, Tata Motors, Reliance Industries, Yes Bank, Adani Ports, Bharti Airtel, Asian Paints, ONGC, HUL, Kotak Bank, IndusInd Bank and Axis Bank, falling up to 4.63 per cent. Sun Pharma rose 1.57 per cent.

On a net basis, foreign portfolio investors (FPIs) sold shares worth Rs 357.82 crore Wednesday, and domestic institutional investors (DIIs) were net sellers to the tune of Rs 791.59 crore, provisional data available with BSE showed. Crude oil prices slipped below the USD 60 per barrel level amid a crucial meeting of Opec members. Elsewhere in Asia, Korea’s Kospi fell 1.55 per cent, Japan’s Nikkei dropped 1.91 per cent, Hong Kong’s Hang Seng shed 2.47 per cent and Shanghai Composite Index tumbled 1.68 per cent. In Europe, Frankfurt’s DAX shed 2.36 per cent and Paris’ CAC 40 fell 2.21 per cent in early deals. London’s FTSE too slipped 2.50 per cent.

Continue Reading

Business

Rupee falls 9 paise to 70.55 against US dollar in early trade

Published

on

By

Rupee

Mumbai | The rupee depreciated by 9 paise to 70.55 against the US dollar in early trade Tuesday at the interbank foreign exchange, amid strengthening of the US dollar and rising crude oil prices.

Forex dealers said fresh demand for the American currency from importers amid rise in crude prices weighed on the domestic unit. Besides, investors were treading the cautious path ahead of the RBI policy decision. The rupee opened lower at 70.50 a dollar and dropped further to quote at 70.55, 9 paise down over its previous close.

On Monday, the local unit snapped its four-day rising streak and dropped by 88 paise, its biggest single-day loss in more than three months, to close at 70.46 against the US currency. Crude prices are on a rebound after Russian President Vladimir Putin and Saudi Arabia’s Crown Prince Mohammed bin Salman agreed to extend their agreement to limit production to arrest a slump in global prices. Crude oil prices surged over 1.07 percent to USD 62.35 per barrel in global markets.

Traders said fresh foreign inflows restricted the decline in the local unit. Foreign institutional investors (FIIs) made fresh purchases worth Rs 293.12 crore Monday, as per provisional data. The BSE benchmark dropped over 100 points in early trade Tuesday amid mixed cues from other Asian markets, rising crude prices, weak rupee and heavy selling by foreign investors.

The 30-share index was trading 133.27 points, or 0.37 percent, lower at 36,107.73 at 0945 hrs. In a similar movement, the NSE Nifty was trading 31.20 points, or 0.29 per cent, down at 10,852.55.

Continue Reading

Popular Stories

Copyright © 2018 Theo Connect Pvt. Ltd.