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Market starts on a volatile note as US-China trade war concerns rise

Mumbai | The BSE benchmark Sensex and NSE Nifty on Tuesday started on a volatile note tracking weakness in global equities amid fresh concerns over US-China trade talks.

After dropping over 100 points in early trade, the 30-share index turned rangebound, and was trading 21.49 points, or 0.06 percent, lower at 35,635.21. Similarly, the 50-share Nifty slipped 2.40 points, or 0.02 percent, to 10,659.15.

On Monday, the Sensex plunged 368 points to close at 35,656.70; and the broader NSE Nifty tumbled 119 points to end at 10,661.55. In morning session on Tuesday, PowerGrid, RIL, Infosys, HDFC Bank, L&T, Yes Bank, HUL, NTPC and Coal India were among the top losers, falling up to 1.60 percent.

While, Sun Pharma, Bajaj Finance, ICICI Bank, ITC, Tata Motors, and Bharti Airtel were the top gainers, rising up to 1.60 percent. On a net basis, foreign portfolio investors (FPIs) purchased shares worth a net of Rs 223.44 crore Monday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 92.32 crore, provisional data available with BSE showed.

According to analysts, global investor sentiment turned jittery after the US charged Chinese telecom giant Huawei with a series of crimes including stealing trade secrets, a move that can escalate hostilities between the world’s biggest economic powers and complicate efforts to negotiate an end to their bruising trade war.

The charges were unveiled ahead of crucial trade talks between American and Chinese officials on January 30 and 31.

Elsewhere in Asia, Hong Kong’s Hang Seng fell 0.58 per cent, Shanghai Composite Index was down 0.50 per cent higher, Kospi slipped 0.28 per cent and Japan’s Nikkei dropped 0.82 per cent in early trade.

On Wall Street, Dow Jones Industrial Average ended 0.84 per cent lower on Monday. The rupee, meanwhile, was trading marginally lower against US dollar at 71.15. The benchmark Brent crude futures rose 0.13 per cent to USD 59.89 per barrel.

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