Sensex drops 96 points as US-China trade tensions escalate

Last Updated: Fri, May 10, 2019 17:59 hrs

Mumbai: Equity benchmark indices fell for the eighth consecutive session on Friday with the Nifty settling below 11,300 level after the United States escalated a trade tariff war with China.

The S&P BSE Sensex dropped 96 points down to close at 37,463 while the Nifty 50 slipped 23 points to 11,279.

Tata Steel fell 6.2 per cent to close the day at Rs 486.95 while IT major HCL Tech wound up with a drop of 4.5 per cent to Rs 1,085.05.

Yes Bank and IndusInd Bank slipped over 3 per cent. Indian Oil was down more than 2 per cent.

However, Zee Entertainment, State Bank of India, Titan, Bharti Infratel and Indiabulls Housing Finance were in the green.

Meanwhile, Asian markets were mixed as the United States hiked tariffs on more than 200 billion dollars in goods from China.

The most dramatic step yet of US President Donald Trump's push to extract trade concessions deepened the conflict that has cast a shadow over financial markets and global economy.

China said it will be forced to retaliate. The negotiations were due to resume on Friday morning Washington time.

Moody's Investors Service said higher US tariffs add to risk aversion globally and could lead to tighter financing conditions with slower growth.