Sensex, Nifty tumble on Indo-US trade war fears
Mumbai: Equity benchmarks Sensex and Nifty Monday piled on losses for the fourth session in a row amid investors fearing that Indo-US import tariff tussle might open a new front in the global trade war.
Besides, fresh geopolitical tensions in the Middle East and concerns over the advancement of monsoon also unnerved market participants.
The BSE gauge settled 491.28 points, or 1.25 percent, lower at 38,960.79. The index hit an intra-day low of 38,911.49 and a high of 39,540.42.
Similarly, the broader NSE Nifty cracked 151.15 points, or 1.28 percent, to close at 11,672.15. During the day, the index touched a low of 11,657.75 and a high of 11,844.05.
Over the past four sessions, the Sensex has lost 796.02 points or 2 percent, while the Nifty has declined by 234.05 points or 1.96 percent.
Sectorally, BSE metal was the worst hit, losing over 3 percent, while energy index fell over 2 percent on Monday.
Broader BSE midcap and smallcap indices followed benchmarks, dropping up to 1.35 percent.
On the Sensex, Tata Steel emerged as the biggest loser with over 5 percent fall. Other major laggards were Vedanta, Tata Motors, Axis Bank, Bharti Airtel, Reliance, ONGC, Sun Pharma, Maruti, and L&T, falling as much as 3.33 percent.
Bucking the weak market trend, Yes Bank, Coal India, and Infosys rose.
India has effected a hike in customs duties on as many as 28 US products, including almond, pulses, and walnut, in response to higher tariffs imposed by Washington on Indian products like steel and aluminum.
"Domestic market has been caught in a bearish grip as investors are increasingly turning cautious led by global trade war which has got murkier. Additionally, geopolitical tensions in the Middle East triggered a sudden spurt in oil prices. Domestic market consolidation will be maintained until global events unfold like the central bank and GST council meet this week," said Vinod Nair, Head of Research, Geojit Financial Services.
On the currency front, the Indian rupee depreciated by 10 paise to close at 69.91 against the US dollar Monday.
Global oil benchmark, Brent crude futures fell 0.46 percent lower at USD 61.76 per barrel.
Asian markets Monday showed a mixed trading pattern, with Seoul stocks ended in the red, while bourses in Shanghai, Hong Kong, and Tokyo closed higher.
Exchanges in Europe were also trading in the green in early deals.
