Sensex, Nifty tank nearly 2% on trade war worries; Tech Mahindra plunges 6%
Mumbai, Feb 28 (PTI): Benchmark indices Sensex and Nifty tumbled nearly 2 per cent on Friday, mirroring deep losses in global markets as the latest announcement of additional 10 per cent tariff on Chinese products rattled investors.
The 30-share BSE benchmark Sensex tanked 1,414.33 points or 1.90 per cent to settle at 73,198.10. During the day, it plunged 1,471.16 points or 1.97 per cent to 73,141.27.
Extending losses to the eighth straight day, the NSE Nifty slumped 420.35 points or 1.86 per cent to 22,124.70.
From its record peak of 85,978.25 hit on September 27 last year, the BSE benchmark index is down 12,780.15 points or 14.86 per cent. The Nifty dropped 4,152.65 points or 15.80 per cent from its lifetime high of 26,277.35 hit on September 27, 2024.
Relentless foreign fund outflows and concerns about the US economic outlook made investors jittery, according to analysts.
From the Sensex pack, Tech Mahindra slumped over 6 per cent followed by IndusInd Bank which tanked over 5 per cent.
Mahindra & Mahindra, Bharti Airtel, Infosys, Tata Motors, Titan, Tata Consultancy Services, Nestle and Maruti were also among the major laggards.
HDFC Bank emerged as the only gainer from the pack.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled with deep cuts. European markets were trading mostly lower. US markets ended sharply lower on Thursday.
"The national market experienced a sharp decline amid heightened bearish sentiment largely influenced by weak global cues. The decline was largely triggered by fear of the implementation of 25 per cent tariff on US imports from Canada and Mexico, set to take effect next week, along with an additional 10 per cent tariff on Chinese goods," Vinod Nair, Head of Research, Geojit Financial Services, said.
Adding to market jitters, the potential imposition of tariffs on the European Union has further fuelled uncertainty, he said.
"As investors navigate this volatility, all eyes are on the domestic Q3 GDP data, which could provide vital insights into the economic recovery trajectory and influence market direction," Nair added.
"The market's decline was primarily driven by mounting concerns over a potential global trade war and a decelerating US economy. US President Donald Trump's announcement of a 25% tariff on imports from Canada and Mexico, effective March 4, along with additional proposed tariffs on China, intensified fears of escalating trade tensions.
"This marked the fifth consecutive month of losses for the Nifty-50, the longest losing streak in nearly three decades," Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox, said.
The BSE smallcap gauge dropped 2.33 per cent and midcap index tanked 2.16 per cent.
All BSE sectoral indices ended lower. Teck slumped 4.20 per cent, BSE Focused IT tumbled 4.20 per cent, IT (4.13 per cent), telecommunication (4.09 per cent), auto (3.84 per cent), consumer discretionary (2.74 per cent), oil & gas (2.61 per cent) and power (2.29 per cent).
As many as 3,234 stocks declined while 759 advanced and 89 remained unchanged on the BSE.
On the weekly front, the BSE benchmark is down 2,112.96 points or 2.80 per cent, and the Nifty tanked 671.2 points or 2.94 per cent. In February alone, the Nifty is down 1,383.7 points or 5.88 per cent. The Sensex lost 4,302.47 points or 5.55 per cent.
Krishna Appala, Sr. Analyst at Capitalmind Research said that the Indian markets have seen a broad-based decline, with the Nifty 50 down 15.6 per cent from its 52-week high, losing 2.9 per cent in the past week.
The sell-off has been sharper in the broader markets, with Nifty Midcap 150 down 21.1 per cent, Smallcap 250 down 25.6 per cent, and Microcap 250 slipping 26.2 per cent from their highs.
Foreign institutional investors (FIIs) offloaded equities worth Rs 556.56 crore on Thursday, according to exchange data.
Global oil benchmark Brent crude dipped 0.69 per cent to USD 73.53 a barrel.
The BSE Sensex eked out marginal gains of 10.31 points or 0.01 per cent to settle at 74,612.43 on Thursday. The Nifty slipped 2.50 points or 0.01 per cent to 22,545.05, registering its seventh day of decline.
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UK PM Keir Starmer takes ‘China matters’ message on first Beijing visit
London (PTI): “Like it or not, China matters to the UK,” is the message British Prime Minister Keir Starmer is taking on his visit to Beijing on Wednesday, accompanied by a 60-strong business and cultural delegation.
Downing Street said the visit, which will also cover Shanghai, reflects the UK’s “clear-eyed and realistic” approach to China in terms of opportunities and challenges they pose by continuing to pursue cooperation while “maintaining guardrails” when it comes to the country’s national security.
The Labour Party government is keen to highlight its re-engagement with China with this first visit in eight years, coming close on the heels of a ministerial go-ahead for its controversial new “mega embassy” in London.
“For years, our approach to China has been dogged by inconsistency – blowing hot and cold, from Golden Age to Ice Age. But like it or not, China matters for the UK,” Starmer said in a pre-visit statement.
“As one of the world’s biggest economic players, a strategic and consistent relationship with them is firmly in our national interest. That does not mean turning a blind eye to the challenges they pose – but engaging even where we disagree.
“This is what our allies do, and what I will do: delivering for the public, putting more money in their pockets and keeping them safe through pragmatic, consistent cooperation abroad,” he said.
The UK PM is set to meet President Xi Jinping and Premier Li Qiang in Beijing on Thursday for talks on trade, investment and national security, before travelling to Shanghai for a range of engagements with British and Chinese businesses.
Accompanied by a delegation of leading UK-based businesses, including Tata Motors owned Jaguar Land Rover, sporting institutions, museums and theatre groups, Starmer is expected to push for access in areas such as the financial services sector, creative industries and life sciences.
“However, he will be clear that we will not trade economic cooperation for our national security. He will raise the areas where we disagree with China – being clear that we will always defend our national security and where viewpoints differ, frank and open dialogue is of vital importance,” Downing Street said.
Describing China as the world’s second largest economy, a crucial player in global supply chains and a growing military power, the UK said it is important to engage with its third-largest trading partner which supports 3,70,000 British jobs.
“We want to see trade flourish between us. From financial services to advanced manufacturing and the global energy transition, the UK’s strengths increasingly align with the rapidly evolving Chinese economy,” said Peter Kyle, the Business and Trade Secretary travelling with Starmer.
“The first duty of government is security, and we protect ourselves best through active engagement and pragmatic cooperation, not by shutting the door,” he said.
The visit follows the 2025 Economic and Financial Dialogue (EFD) that the UK’s Department for Business and Trade (DBT) claimed secured 600 million pounds in immediate benefits and the first UK-China Joint Economic and Trade Commission (JETCO) since 2018.
“The UK’s world-leading financial services sector is a cornerstone of our economy. With deep and liquid markets, and the FTSE hitting all-time highs, there are real opportunities for mutually beneficial cooperation with China which supports jobs for working people and growth for businesses across Britain,” said Lucy Rigby, Economic Secretary to the Treasury, also part of the ministerial delegation.
The Opposition Conservatives have criticised Starmer’s approach to China, amid human rights concerns and espionage fears. “Starmer has already surrendered to the Chinese Communist Party over their plan for a spy-hub super embassy in the heart of our capital,” said shadow foreign secretary Priti Patel.
“The evidence is overwhelming that China poses a serious threat to our national security and it is clear Starmer is going to China without any leverage. He lacks the backbone to stand up for Britain and is bending over backwards to appease Beijing,” she said.
Following his trip to China, Starmer is set to travel to Tokyo to meet with Japanese Prime Minister Sanae Takaichi to reinforce the UK-Japan partnership, said to be worth over 100 billion pounds and supporting 2,00,000 UK jobs.
