Tariff tensions, weak global cues sink mkts

Mumbai: Stock market benchmark indices Sensex and Nifty tanked over 1 per cent on Tuesday due to heavy selling pressure in market heavyweights Reliance, Bajaj Finance and M&M amid escalating geopolitical tensions.

Besides, ongoing weakness in the rupee and persistent foreign fund outflows dented investors’ sentiment.

Extending its previous day’s decline, the 30-share BSE Sensex tumbled 1,065.71 points, or 1.28 per cent, to settle at 82,180.47. During the day, it dropped 1,235.6 points, or 1.48 per cent, to 82,010.58. The 50-share NSE Nifty tanked 353 points, or 1.38 per cent, to end at 25,232.50. From the 30-Sensex firms, Eternal declined by 4.02 per cent, followed by Bajaj Finance (3.88 per cent), Sun Pharma, InterGlobe Aviation, Trent, Asian Paints, Mahindra & Mahindra and Bajaj Finserv. HDFC Bank emerged as the only gainer from the pack. Foreign institutional investors offloaded equities worth Rs 3,262.82 crore on Monday, while Domestic Institutional Investors (DIIs) remained buyers as they bought stocks worth Rs 4,234.30 crore, according to exchange data. In Asian markets, South Korea’s Kospi index, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index settled lower. Markets in Europe were trading over 1 per cent lower. US markets were closed on Monday for a holiday. “The aggressive and often unpredictable use of tariffs by the US as a foreign policy tool is creating widespread unease among global market participants, triggering sharp volatility across financial markets. This has weighed heavily on risk assets.

“Fresh threats by US President Donald Trump to impose additional tariffs on European nations opposing the US move to take control of Greenland have triggered another bout of global equity selling, with Indian markets also witnessing broad-based pressure,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.