Domestic stock markets swung between gains and losses all through Wednesday's trading session before ending the day marginally higher. Escalating trade war concerns between the US and China made Dalal Street cautious, analysts said. The S&P BSE Sensex settled at 36,265.93, up 1.05 points or 0.01 per cent while the broader Nifty50 closed at 10,948.30, with a gain of 1.05 points or 0.01 per cent. Twenty out of 50 Nifty stocks ended higher. IT stocks were the biggest sectoral gainers, led by Tata Consultancy Services (TCS) shares which finished 5 per cent higher after the company reported performance in the April-June quarter.
"The markets are cautious ahead of the release of the list of Chinese imports (worth $200 billion) which are likely to face tariffs. The overall sentiment in the global markets has turned pessimistic due to trade tensions," said Viral Berawala, CIO, Essel Mutual Fund.
Shares of eleven out of 12 public sector banks closed lower while FMCG and realty stocks gained along with IT shares.
In the broader markets, the S&P BSE Midcap index lost 0.67 per cent and the S&P BSE Largecap index ended 0.09 per cent higher.
Investors will watch out for key macro data scheduled to be released on Thursday, said experts. After a smart upmove, some consolidation cannot be ruled out in the coming sessions. Key domestic macro events like May IIP, June CPI inflation data and corporate earnings season will provide further direction to the markets in the near term...Traders should avoid risky leveraged positions," said Jayant Manglik, President, Religare Broking Ltd.
Global stocks fell and metals prices slumped to their lowest in a year, according to a report by news agency Reuters. The threat of imposition of tariffs by the United States on the additional $200 billion worth of Chinese goods pushed the world's two biggest economies closer to a full-scale trade war.
Shanghai markets were the hardest hit - with stocks there being down almost 2 per cent and the yuan weakening towards 11-month lows registered last week, down 0.4 per cent to 6.66 per dollar. Hong Kong's Hang Seng lost more than 1 per cent, as did Japan's Nikkei as the yen received something of a safety bid.
Europe's main bourses, also taken aback as US President Donald Trump kicked off a NATO summit in Brussels by accusing Germany of being a "captive" of Russia, saw similar falls.
In the commodities market, Brent crude futures lost 0.8 per cent to $78.22 a barrel. (With Reuters inputs)