Share markets in India are presently trading marginally lower. Sectoral indices are trading on a negative note with stocks in the oil & gas sector and IT sector witnessing maximum selling pressure.
The BSE Sensex is trading flat, while the NSE Nifty is trading down by 16 points (down 0.2%). The BSE Mid Cap index is trading down by 0.3%, while the BSE Small Cap index is trading down by 0.4%. The rupee is trading at 64.90 to the US$.
Stock market participants are closing tracking concerns lingering over a possible trade war which led to a sharp sell-off in global equities at the end of the last week.
Last week, US President Donald Trump announced tariffs on Chinese goods and thereby stoking fears of a trade war.
Towards the above development, China said it doesn’t fear a trade war with the US and announced plans for reciprocal tariffs on US$ 3 billion of imports from the US.
Reportedly, China plans tariffs on imports of US pork imports, recycled aluminum, steel pipes, fruit, and wine. China will also pursue legal action against the US at the World Trade Organization (WTO) in response to the US planned tariffs on steel and aluminum imports.
Policymakers across the world are warning of a brewing trade war that could undermine the broadest global recovery in years. Meanwhile, business groups representing companies ranging from Walmart Inc. to Amazon.com Inc. are warning US tariffs could raise prices for consumers and sideswipe stock prices.
How exactly this trade war will unfold is something to watch out for. We’ll keep you updated on all the developments from this space.
In the news from the IPO space, the initial public offer of Lemon Tree Hotels Ltd has opened for subscription today.
The proceeds from this IPO of around Rs 10.9 billion will go to the selling shareholders. None of the promoters are selling their shares in this IPO and thus their holdings post the IPO will remain the same at 29.16%.
