Mumbai: Equity benchmark Sensex on Monday plummeted nearly 363 points in line with global market sell-offs as investors panicked sensing fresh trouble for the world economy after the US vowed to further raise tariffs on Chinese goods. Similarly, the NSE Nifty dived 114 points to settle below the 11,600-level. In a sign of derailment of trade talks between the two global economic powers the US and China, US President Donald Trump on Sunday threatened to hike tariffs on $200 bn worth of Chinese goods.
Tracking tepid global market trend, the BSE gauge Sensex opened on a weak note at 38,719.33 against its previous close of 38,963.26. It lost further ground as the trade progressed and hit a low of 38,509.79 during the day. The index finally settled at 38,600.34, down 362.92 points or 0.93 per cent. The broader NSE Nifty too started off the session on a bearish note and fell to a low of 11,571.35 before settling the day at 11,598.25, losing 114 points or 0.97 pc.
Indian equities traded under the shadow of volatile Asian stocks rattled by renewed fears that the US and China trade negotiations are on the verge of collapse. “The fall in the markets was mainly due to US President Donald Trump planning on doubling the tariff rate on USD 200 billion of Chinese goods,” Hemang Jani, Head – Advisory, Sharekhan by BNP Paribas, said. According to traders, domestic market turned jittery after Trump’s surprise move spooked global investors. In a tweet on Sunday, Trump said he would raise import taxes on USD 200 billion in Chinese products to 25 per cent from 10 per cent on Friday. Despite Trump’s announcement, China’s top trade envoy is preparing to travel to the US to resume talks on Wednesday.