Sensex closes lower by 115 points amid trade war fears; all eyes on OPEC meeting


Mumbai, Jun 21: The market ended the volatile session on a negative note Thursday, weighed down by ITC, Larsen & Toubro and select banks. Investors closely monitor trade developments between the US and China, and await OPEC decision due Friday.
All sectoral indices ended in the red with the Auto, Metal, Pharma, and PSU Bank falling 1-2 percent.
The 30-share BSE Sensex reversed some previous day’s gains, falling 114.94 points to 35,432.39 while the 50-share NSE Nifty shed 30.90 points to 10,741.10.
“Market continued to be under pressure as trade tensions between the US and China is getting escalated. Emerging markets including India were under performing due to FIIs selling,” Vinod Nair, Head of Research, Geojit Financial Services said.
OPEC meeting tomorrow will be a key event, relaxation in production cuts will provide some relief to Indian markets, he said.
On the global front, oil prices corrected sharply ahead of likely increase in crude output in the OPEC meeting. Brent crude futures, the international benchmark for oil prices, were down 1.65 percent at $73.51 a barrel.
European stocks were lower ahead of OPEC meeting and ECB rate decision. Germany’s DAX was down 1 percent and France’s CAC down half a percent at the time of writing this news.
Asian markets closed mixed as investors monitor trade developments between world’s largest economies US and China. China’s Shanghai Composite, Hong Kong’s Hang Seng and South Korea’s Kospi closed down over a percent while Japan’s Nikkei gained 0.6 percent and Australia’s ASX 200 rose 1 percent.
Back home, the broader markets under performed frontliners with the Nifty Midcap index falling 0.6 percent on weak breadth. About two shares declined for every share rising on the NSE.
Oil marketing companies HPCL, BPCL and IOC gained 2-3 percent on sharp correction in Brent crude futures.
ICICI Bank share price rallied 1.6 percent after a media report indicated that the country’s largest private sector lender may appoint former Bank of Baroda Chairman and Managing Director MD Mallya as its new chairman.
Petrochemical major Reliance Industries ended at record closing high of Rs 1,031.95, up 1.25 percent on top of 2.4 percent gains in previous session.
HDFC (up 0.64 percent) and Infosys (0.27 percent) also supported the market. ITC, L&T, M&M, SBI, Titan Company, Maruti Suzuki, Axis Bank, Kotak Mahindra Bank and ONGC were down 1-2 percent.
Can Fin Homes gained over a percent as the company sought shareholders’ nod to raise Rs 6,000 crore via NCDs/bonds while Manpasand Beverages rallied 5 percent ahead of board meet on June 27 to consider Q4 results and report from new auditors.
InterGlobe Aviation rallied 3.5 percent after the company clarified that the management did not receive any summons from the Enforcement Directorate with respect to the FEMA violation case.