The Indian Equity Benchmark Sensex and the Nifty 50 saw a steep decline on Tuesday, 20 May, dragging weak global cues, profit booking and a vigilant spirit from institutional investors.
The BSE Sensex dropped more than 800 points, hitting 81,250 intraday low, while NSE NIFTY50 fell below 24,700 levels, indicating widespread sales in various fields.
Seven of the 13 major areas were less, leading to the benefits of information technology and metal shares. The broad small-cap was 0.3%above, while the middle-cap was 0.1%below.
“The market is waiting for the next major trigger. It could be an Indo-US trade deal. When it is announced, it needs to be seen,” the news agency’s Reuters quoted the head of Equity Research in Cholamandalam Securities.
US President Donald Trump said last week that India had offered a business deal in which “no tariff” was proposed for American goods.
Top metals consumer China was the top regional beneficiaries after the first time after October cut benchmark lending rates, so that the impact of the trade war with the United States to help buffer its economy.
Tata Steel and Hindalco Industries jumped 1.6% and 1% respectively, and were among the top five Nifty 50 gainers.
Meanwhile, this stock rose nearly 1%, resumed most of the damage seen in the last session after Moody’s Dowgrad in the United States.
Why is Sensex, Nifty Down today?
Market experts told news agency ANI that the pressure in the US markets is clear, roughly due to the impact of tariff wars under President Trump’s administration.
The tariff policy, which contains minimum 10 percent of duties on almost all imports in the US, has raised concerns about the future of global trade. The impact of this trade policy has been felt in financial markets worldwide including India.
Ajay Bagga, a banking and market expert, told ANI, “EMS (emerging markets) will not be poured out of the US recession, although there is definitely a slow renovation from American property to Europe, Japan and EMS in Europe.
Adding under pressure, the White House and the US Treasury recently strongly opposed Moody’s USA’s “AAA” credit rating.
Despite these developments, American stock futures remained weak throughout the Asian and European trading sessions, but managed to recover and shut down in green for the sixth consecutive day.
MSCI Asia East Japan, which fell 0.5% in the previous season, was certainly certainly to fix all its losses as investors took stock of the debt load of the world’s largest economy and waited for business deals.
