The Sensex fell sharply in early trade on Monday amid weak Asian markets. The Sensex fell over 250 points to 33,763 while Nifty slid to 10,356. Global equities went into a tailspin last week after US President Donald Trump unveiled his plans for the controversial levies on metal imports. Asian markets turned negative again today as the fallout from US President's steel and aluminium tariffs continues to feed concerns of a global trade war. Trump ramped up his rhetoric at the weekend, tweeting that "Our friends and enemies have taken advantage of the US for many years", before adding, "Sorry, it's time for a change!"
The move, part of the president's "American First" protectionist drive, was met with fury across the world with officials from Beijing to Brussels raising concerns.
Canada and Mexico have threatened retaliation, and the European Union said it would apply 25 per cent tariffs on about $3.5 billion of imports from the United States if Trump carried out his threat. China said on Sunday it did not want a trade war with the United States but will defend its interests, adding policies based on "mistaken assumptions" will damage bilateral relations.
The decline in domestic stock markets were broad-based today with banking, healthcare, auto and FMCG stocks suffering steep losses. Among the Nifty50 stocks, Tata Motors, Yes Bank and Gail India fell over 2 per cent while Hindalco Industries and Aurobindo Pharma fell 3-4 per cent.
The rupee rose to 64.99 against the US dollar today, as compared to previous close of 65.17.
In a blog post, market analyst Ambareesh Baliga said 10,200 is a crucial level for the Nifty. "We need to watch for psychological Nifty support levels of 10,200 where a breach could trigger a sell-off."
(With Agency Inputs)