Sensex Continues To Trade Deep In The Red; Union Bank Plunges 8% -

Sensex Continues To Trade Deep In The Red; Union Bank Plunges 8%

Mar 23, 2018Jeremy ParkinsonFinance0

Indian share markets continued to witness selling pressure in the noon session following losses in global equities after US President Donald Trump announced tariffs on Chinese goods stoking fears of a trade war.

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 aluminium, 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 aluminium imports.

Policy makers 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.

The BSE Sensex is trading lower by 431 points and the NSE Nifty is trading down by 133 points. Meanwhile, the BSE Mid Cap index is trading down by 1.9% & the BSE Small Cap index is down by 2.2%.

Losses were largely seen in realty stocks, metal stocks and bank stocks. The rupee is trading at 65.06 to the US$.

Union Bank of India share price fell 8.2% in the noon session after The Central Bureau of Investigation (CBI) registered a Rs 13.94 billion bank fraud case against Hyderabad-based Totem Infrastructure Ltd on a complaint by state-run Union Bank of India.

It was alleged in the complaint by Union Bank that the company had diverted funds by opening accounts outside the consortium and through payments of wages by showing excess expenditure and inflated stocks. The entire sale proceeds were not allegedly routed through the dealing branches of consortium banks.The number of bank fraud cases has been piling up after the Reserve Bank of India (RBI) directed banks to file complaints against erring companies. The latest case comes just a day after the investigating agency filed a case of loan fraud against Kanishk Gold Pvt. Ltd on a complaint by State Bank of India (SBI).