Trade war fears spook markets; Sensex falls 319 points

Benchmark stock indices Sensex and Nifty closed lower on Monday tracking weak global markets amid concerns over US President Donald Trump imposing tariffs on some of its trading partners.

Photograph: Francis Mascarenhas/Reuters

The 30-share BSE Sensex declined 319.22 points or 0.41 per cent to settle at 77,186.74, snapping its five-day rally.

Intra-day, it tumbled 749.87 points or 0.96 per cent to 76,756.09.

The NSE Nifty declined 121.10 points or 0.52 per cent to 23,361.05.

From Sensex shares, Larsen & Toubro, Tata Motors, Hindustan Unilever, Asian Paints, ITC, Power Grid, NTPC and Reliance Industries were the major laggards.

Among the gainers, Bajaj Finance jumped over 5 per cent. Mahindra & Mahindra, Bajaj Finserv, Bharti Airtel and Maruti also ended higher.

In Asian markets, Seoul, Tokyo and Hong Kong settled sharply lower.

Markets in Europe were trading with deep cuts. US markets ended lower on Friday.

“Slump in global equity markets weighed negatively on Indian benchmarks after Trump announced tariffs on China, Mexico and Canada which fuelled pessimism amongst the investors.

“Besides, the rupee depreciating sharply raised concerns that foreign investors are unlikely to reverse the selling trend,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

The 25 per cent tariff on most imports from Canada and Mexico and 10 per cent tariff on goods from China will take effect from Tuesday.

“The global market got unsettled amid the onset of the ‘Trade War,’ as tariff conflicts between the US and other nations are unlikely to yield any economic benefits.

“Instead, it may cause challenges to the global economy, heightening global financial risks,” Vinod Nair, Head of Research, Geojit Financial Services, said.

Global oil benchmark Brent crude jumped 1.15 per cent to $76.50 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,327.09 crore on Saturday, according to exchange data.