The market declined steeply, tracking negative global cues as fears of a potentially major escalation in the Sino-US trade conflict weighed on investor sentiment, while the rupee depreciated to a fresh low, bolstering inflation concerns. The barometer index, the S&P BSE Sensex, fell 467.65 points or 1.22% to 37,922.17, as per the provisional closing data. The Nifty 50 index fell 151 points or 1.30% to 11,438.10, as per the provisional closing data. The Sensex ended below the psychologically important 38,000 mark.
Indices declined sharply in afternoon trade after opening lower. Indices trimmed losses in mid-afternoon trade. Indices hit fresh intraday low in late trade. The Sensex fell 35.30 points, or 0.09% at the day's high of 38,354.52 at the onset of trading session. The index fell 506.99 points, or 1.32% at the day's low of 37,882.83 in late trade. The Nifty fell 16.10 points, or 0.14% at the day's high of 11,573 at the onset of trading session. The index fell 161.80 points, or 1.40% at the day's low of 11,427.30 in late trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1064 shares rose and 1690 shares fell. A total of 173 shares were unchanged.
Sun Pharmaceutical Industries (down 4.1%), Mahindra & Mahindra (down 3.69%), Vedanta (down 3.48%), State Bank of India (down 2.52%), IndusInd Bank (down 2.36%), ONGC (down 2.09%), Coal India (down 2.01%), HDFC (down 1.99%) and HDFC Bank (down 0.62%), were the prominent Sensex losers.
Tata Motors fell 0.97%. Tata Motors' subsidiary Jaguar Land Rover (JLR) reported 4.9% fall in total retail sales to 36,629 vehicles in August 2018 over August 2017. Jaguar retail sales were 11,802 vehicles in August, up 7.7% year on year, driven by the introduction of the E-PACE and I-PACE, as well as XE long wheelbase sales in China. Land Rover retailed 24,827 vehicles in August, down 9.9% compared to August 2017 as increased sales of the Velar and the refreshed Range Rover were offset by the impact of the lower sales in China on Range Rover Evoque and Discovery Sport in particular. The announcement was made after market hours on Friday, 7 September 2018.
Retail sales were up in the UK (64.9%), Overseas markets (20.2%) and North America (2.5%), with Europe slightly below last year (3.1%), waiting for last WLTP certifications. The China market remains unsettled following tariff changes and trade tensions (down 38.1%), although the reduction in duty from 25% to 15% is expected to be beneficial over the full year. UK sales were boosted by a catch up in WLTP certification of vehicles with only 2 derivatives remaining to be certified in September.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 72.41, compared with its close of 71.74 during the previous trading session.
Overseas, shares in Europe struggled to make gains while most Asian shares ended lower on Monday, as trade tensions between the US and China remain in focus. China's trade surplus with the United States widened to a record in August even as the country's export growth slowed slightly. Trade surplus hit $31.05 billion in August, up from $28.09 billion in July, customs data showed on Saturday, surpassing the previous record set in June. Over the first eight months of the year, China's surplus with its largest export market has risen nearly 15%, adding to tensions in the trade relationship between the world's two largest economies. China's annual export growth in August moderated slightly to 9.8%, the data showed, the weakest rate since March but only slightly below recent trends.
China's consumer inflation accelerated to a six-month high in August, driven by a faster increase in vegetable prices and softer decline in pork prices, official data showed Monday. The consumer-price index rose 2.3% in August from a year earlier, compared with a 2.1% gain in July, the National Bureau of Statistics said.
US stocks closed lower Friday after US President Donald Trump threatened tariffs on a further $267 billion worth of Chinese imports, on top of earlier promises to levy duties on $200 billion worth of Chinese goods. While the US tariffs on $200 billion Chinese goods have not been implemented, Trump said they could "take place very soon, depending on what happens with them."
US jobs report that showed that 201,000 jobs were added in the month of August. The unemployment rate held steady at 3.9% and wage growth showed signs of accelerating.
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