The domestic indices were trading largely flat on Monday morning taking cues from from their key Asian counterparts.
Among sectoral indices, the Nifty PSU Bank index was trading nearly 1% higher led by a rise in the shares of State Bank of India, Punjab National Bank and Bank of Baroda.
In the week ahead, domestic investors will look forward to the fiscal deficit data to be released on Wednesday. Also, the expiry of the current month futures and options contracts are due on Wednesday and positions will be rolled over to next month.
In the global markets, fears of a full-blown trade war between the United States and China battered Asian shares again on Monday, keeping the safe haven yen near a 16-month peak as investors fretted over the fate of global growth.
Japan’s Nikkei stumbled 0.9 per cent to a near six-month trough in early trade, while MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.1 per cent for their fourth consecutive day in the red.
US President Donald Trump had signed a memorandum last week that could impose tariffs on up to $60 billion of imports from China, although the measures have a 30-day consultation period before they take effect.
China urged the United States to “pull back from the brink” as the world’s two largest economies moved closer to a trade war with potentially dire consequences for the global economy.
The tariffs are on top of additional duties on steel and aluminum on a number of countries including China, which has already hit back with its own plans to slap duties on up to $3 billion of US imports.
US shares were also clobbered last week, with the Dow falling 1.8 per cent on Friday, the S&P 500 declining 2.1 per cent and the Nasdaq off 2.4 per cent..business-standard