Trump Trade War Sinks Stock Market While Bears Maul Oil Scrips

Equity market. Image credit X.com
Stock Market Today Crashes as Investors Ignore Budget Boost Plan
By S Jha
New Delhi, February 3: Oil stocks went down in early trades on Monday. The stock indices nose-dived a day after Union Minister Nirmala Sitharama unveiled the Union Budget.
Nifty was trading with losses of whopping 250 points. Bank Nifty sank with cut of almost 500 points. Sensex too dived down with loss of almost 700 points.
The oil stocks were bleeding in the early trades. They were reacting badly to US President Donald Trump slapping tariffs on Canada, Mexico, and China.
Trump has also warned European Union of impending tariffs. Canda has also slapped counter tariffs on the US. Market participants claim that equities face risks of a trade war in the world.
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Shares of Bharat Petroleum and ONGC were trading lower by almost five per cent each. Metal stocks were trading lower amid prospects of the Chinese economy taking hit from the US tariffs.
“While there were no shocks for the equity markets from the Union Budget, there were nothing to cheer about either. The Union Budget passed off as a non-event for the markets,” said an equity market veteran while discussing the Budget in an investors’ group.
Shares of Maruti stood tall amid an all-round rout in the equity market. The stock was reacting positively on Budget proposals for duty cuts on lithium battery. Maruti claims to be a market leader in hybrid cars.
Shares of Eicher Motors were also leading the gains in the stock markets. Titan shares were also strong amid the ongoing marriage season and positive market commentary.
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Stocks of the public sector enterprises were hammered in the early trades. The CPSE index was trading lower by over four per cent.
The market participants claimed that the PSU stocks have come under pressure for lack of positive cues in the Union Budget. Almost, status quo budget allocations for the Railways and the Defence brought pressure on stocks from the two sectors.
However, the IT stocks were maintaining green shade in the early trades. The bulls’ charge in the IT index was led by Wipro, which is trading at lifetime high.
Shares of other IT stocks were also trading higher. The defensive FMCH stocks are seen in demand in the street. Shares of Nestle led the gains in the FMCG counter on Monday.
(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)
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