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Sensex sheds 100 points, Nifty tests 11,950 as trade deal hopes wane

NEW DELHI: Domestic equity indices opened with a cut on Wednesday after comments from US officials waned hopes of a trade deal between the US and China.

Trump told reporters in London that there is “no deadline” for an agreement with China to end the tit-for-tat tariff war. “In some ways, I like the idea of waiting until after the election for the China deal,” he said.

US Commerce Secretary Wilbur Ross said if no substantial progress was made soon, another round of duties on Chinese imports including cell phones, laptops and toys would take effect on December 15.

Following these remarks, BSE benchmark Sensex shed 109 points to 40,565 while its NSE counterpart Nifty slipped 32 points to 11,961. Broader market indices traded in line with their headline peers as Nifty Midcap was down 0.39 per cent to 16,851 and Nifty Smallcap was trading lower by 0.30 per cent at 5,704. Nifty 500 was down 0.31 per cent at 9,713.

Except IT and pharma, all other sectoral indices on NSE were trading in the red. Nifty Metal was the biggest loser, down 1.87 per cent to 2,516. Nifty PSU Bank was the next biggest loser, down 0.97 per cent to 2,545.

India VIX, the measure of volatility in the market, was down 5 per cent at 13.81.

Tata Motors was the biggest gainer in 30-share pack Sensex, rising 1.77 per cent to Rs 160.95 in early trade. TCS, up 0.96 per cent at Rs 2,070, was the next biggest gainer on the index. On the other hand, YES Bank continued its downfall, slipping 2.27 per cent to Rs 58.15.

Globally, Asian shares extended their losses on Wednesday after US President Donald Trump said a trade deal with China might have to wait until after the 2020 presidential election, dashing hopes for a quick preliminary agreement.

Investors turned to safe-havens, boosting bond prices and sending gold to a one-month high, while MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.9 per cent.

Japan’s Nikkei dropped 1.2 per cent, matched by falls in Hong Kong and Korea , where stock markets hit their lowest since October. Shanghai blue chips fell 0.2 per cent and Australia’s S&P/ASX200 tumbled 1.7 per cent, having shed almost 4 per cent since closing on Monday.

Source: Economic Times