Mumbai, Jul 6: The S&P BSE Sensex erased most of its intraday gains while the Nifty50 failed to close above its crucial level of 10,800 levels on Friday as investors prefer to book profits at higher levels.
Trading remains muted across most of the Asian markets but bulls manage to gain control on D-Street amid fears of a trade war, but some experts say that it was priced in. U.S. tariffs on $34 billion worth of Chinese exports took effect on Friday, and concerns of retaliation by Beijing somewhat dampened sentiment across the region.
US tariffs on more than 800 goods from China worth $34 billion took effect earlier today while China’s commerce ministry said in a statement shortly after the deadline passed that it was forced to retaliate, meaning $34 billion worth of imported U.S. goods including autos and agricultural products also faced 25 percent tariffs, said a Reuters report.
“Chinese shares led a recovery by Asian market, partly helped by the perception that the tariff measures were already priced in though worries about what lay ahead for global markets boosted appetite for perceived safe-haven assets such as government debt and the Japanese yen,” it said.
The S&P BSE Sensex closed 83 points higher or 0.23 percent at 35,657 while the Nifty50 ended 22.90 points higher at 10,772.65.
Sectorally, the S&P BSE Auto index rose 1.39 percent, followed by the S&P BSE Realty index which gained 1.27 percent, and the S&P BSE Capital Goods index was up 1.1 percent.
On the losing front, the S&P BSE Healthcare index slipped 0.75 percent, followed by the S&P BSE Consumer Durables index which was down 0.23 percent, and the S&P BSE FMCG index dropped 0.16 percent.
The S&P BSE Midcap index rose 0.56 percent while the S&P BSE Smallcap index gained 0.46 percent.
Top Sensex gainers include names like Hero MotoCorp, Tata Motors, Bajaj Auto, TCS, M&M, and Adani Ports.
Top Sensex losers include names like NTPC, HDFC, Wipro, Vedanta, ICICI Bank, ONGC, and Bharti Airtel.
Shares of Punjab National Bank (PNB) added 1.7 percent as the public sector lender put on sale three NPAs worth Rs 136 crore. The company has put on sale three non-performing assets to recover Rs 136 crore dues from the borrowers.
Tata Consultancy Services touched a fresh record high above Rs 1,900 per share, supported by expectations of strong growth in the June quarter and depreciation in the rupee against the dollar. Brokerages expect over 3 percent sequential growth for the June quarter, above peers such as Infosys and HCL Technologies. The stock closed 1.6% higher.
Auto component maker Varroc Engineering started off trade at Rs 1015 on the first day Friday. The stock price gained 7.6% on the BSE.
Shares of cable TV service providers Den Networks and Hathway Cable continues to fall today as well after Reliance Industries launched ultra-high speed fixed line broadband services for homes and enterprises on Thursday. Den Network closed 7.3% lower, Hathway Cable ended 11 percent down, and Siti Network closed 5% power.
Shares of Sobha rose 3.3 percent after the company’s sales bookings for the first quarter of FY19 increased by 22 percent to Rs 762.4 crore as compared to corresponding quarter last year on higher volumes.
Asian markets recovered on Friday, with China’s Shanghai Composite ended with a half a percent gain amid US tariff worth $ 34 billion took effect today.
Japan’s Nikkei rose more than 1 percent and Hong Kong’s Hang Seng up 0.4 percent and South Korea’s Kospi was up 0.6 percent.
However, European markets were trading with marginal gains. Germany’s DAX and France’s CAC up 0.10 percent while Britain’s FTSE trading flat at the time of writing this news.