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Sensex Closes 30 Points Higher Despite Renewed US-China Trade War Fears: 10 Points

Buying was witnessed in PSU pharma and energy stocks
Buying was witnessed in PSU pharma and energy stocks
  1. Twenty-seven stocks on the 50-scrip Nifty index finished the day in the positive zone. 
  2. Global markets have been volatile this week amid the back-and-forth of the US-China trade conflict. Sentiment soured on renewed fears of a trade war after US President Donald Trump proposed more tariffs on China.
  3. "The volatility in markets in the last 10 days has unnerved a lot of people. We haven't seen the end of the trade war between Trump and China, which is creating confusion in investors' minds," said Dilip Bhat, joint managing director at Prabhudas Lilladher Pvt Ltd.
  4. Mr Trump said on Thursday that he had directed US trade officials to identify tariffs on $100 billion worth additional Chinese imports, escalating the dispute between the world's two largest economies.
  5. “Going ahead, the focus of the markets will shift back to earnings which are likely to kick start from next week as well as future growth outlook by the various management (of companies). Earnings growth is also likely to be supported by a low base of Q4FY17,” said Teena Virmani, Vice President – Research at Kotak Securities Ltd.
  6. Pharma stocks rose, with the Nifty Pharma, the NSE's sub-index of pharmaceutical stocks, settling 1.3 per cent higher. 
  7. Piramal Enterprises finished nearly 5 per cent higher. GSK Pharma, Sun Pharma and Dr Reddy's Laboratories ended with gains of between 0.6 per cent and 1.9 per cent.
  8. Banking stocks also advanced, with the Nifty PSU Bank closing 0.9 per cent higher.
  9. Punjab National Bank (PNB) closed 5.3 per cent higher. Among other state-run banking stocks, Allahabad Bank rose 3.5 per cent, Andhra Bank 2.7 per cent OBC 1.9 per cent and Bank of India 1.8 per cent. 
  10. "On the positive side, a couple of things are getting clearer after yesterday's policy - growth will be decent and the government's borrowing program indicates they won't go overboard in borrowing," Mr Bhat added.
  11. Among energy stocks, BPCL rose 2.7 per cent, Tata Power 1.2 per cent and GAIL India 0.6 per cent. Indian Oil closed a mild 0.4 per cent higher.
(With agency inputs)