Equity benchmark indices Sensex and Nifty plunged in early trade on Tuesday, tracking a weak trend in the global markets, incessant foreign fund outflows and concerns over US tariffs.
According to experts, the weak global market, concerns over a global trade war, and continued foreign institutional investors (FII) selling have negatively impacted the domestic market.
The 30-share BSE Sensex declined 139.45 points or 0.19 per cent to 72,946.49 in the morning trade.
On the similar lines, the NSE Nifty opened below the 22,000-level by declining 144.85 points or 0.66 per cent to 21,974.45. Later, it recouped some of its losses and was trading 64.50 points or 0.29 per cent lower at 22,054.80.
From the Sensex pack, Nestle India, HCL Technologies, Tech Mahindra, Bharti Airtel, Titan, Infosys, Asian Paints, NTPC, Bajaj Finserv and Sun Pharmaceuticals were among the laggards.
State Bank of India, IndusInd Bank, Zomato, Tata Steel, ICICI Bank, Tata Motors, Mahindra & Mahindra, Tata Consultancy Services and Adani Ports were the gainers.
President Donald Trump said on Monday that 25 per cent taxes on imports from Mexico and Canada will take shape on Tuesday, sparking renewed fears of a global trade war.
Additionally, an extra 10 per cent tariff is being imposed on China.
"President Trump's tariffs on Canada, Mexico, and China raise uncertainty, which could deepen Nifty's mild decline if trade tensions worsen. Further, FIIs have sold over Rs 4,08,984 crore this fiscal year, creating fear in the market," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
In Asian markets, Tokyo and Hong Kong were trading lower, while Shanghai and Seoul were quoting flat.
US markets ended lower in overnight deals on Monday.
Global oil benchmark Brent crude slipped 0.63 per cent to USD 71.17 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,788.29 crore on Monday, according to exchange data.
On Monday, the 30-share BSE benchmark declined by 112.16 points to close at 73,085.94. Extending losses to the ninth session, the NSE Nifty slipped 5.40 points to settle at 22,119.30.
