Bulls run for cover as US, China trade duties
Escalating tensions between Washington and Beijing gripped global markets with Indian benchmark indices declining over 1 per cent to close at a five-month low and the Nifty ending below 10,000 for the first time since October 2017 on Friday. The week also marked the third weekly decline in the Indian markets.
Trade war concerns snowballed after US President Donald Trump on Thursday announced tariffs on at least $50 billion in Chinese imports. Beijing retaliated on Friday unveiling tarif on $3 billion of US imports as nervous investors groped in the dark, uncertain about implications of the moves on global economic recovery.
The Sensex tumbled 409.73 points, or 1.2 per cent, to end at 32,596.54, the lowest since October 18 last year. The Nifty declined 116.70 points, or 1.2 per cent, to 9,998.05, the lowest since October 11 last year. The Sensex fell 1.7 per cent and the Nifty was down 1.9 per cent for the week.
“If global markets fall, India cannot escape. Trade wars are problematic — how far it will go is a matter of concern,” said Shankar Sharma, vice-chairman of First Global.
CLSA chief strategist Christopher Wood expects some kind of truce to emerge.
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