Markets slump in early trade amid fresh tariffs concerns, foreign fund outflows

Mumbai: Benchmark indices Sensex and Nifty declined in early trade on Monday amid fresh tariffs concerns and unabated foreign fund outflows.

Declining for the fourth day running, the 30-share BSE benchmark Sensex dropped 343.83 points to 77,516.36 in early trade. The NSE Nifty declined 105.55 points to 23,454.40.

From the 30-share blue-chip pack, Tata Steel, Power Grid, NTPC, Zomato, Sun Pharma and Bajaj Finance were among the major laggards.

Bharti Airtel, Hindustan Unilever, State Bank of India and Nestle were among the gainers.

In Asian markets, Seoul and Tokyo were trading lower while Shanghai and Hong Kong quoted in the positive territory.

US markets ended lower on Friday.

Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox, said, "Wall Street ended sharply lower on Friday, with benchmark Treasury yields climbing in response to a mixed US payrolls report, disappointing consumer sentiment data, and renewed trade war concerns. US futures declined after President Trump announced he would reveal new steel and aluminum tariffs on Monday, along with reciprocal tariffs aimed at other countries." Foreign Institutional Investors (FIIs) offloaded equities worth Rs 470.39 crore on Friday, according to exchange data.

"With the dollar index above 108 and the 10-year US bond yield above 4.4 per cent, FIIs will continue to sell the rally, restricting any potential upside.

"It is important to understand that valuations in India continue to be on the higher side, particularly in the broader market. The market needs fundamental triggers like indications on GDP growth and earnings rebound. Until then the market is likely to move only in a range," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

Global oil benchmark Brent crude climbed 0.56 per cent to USD 75.08 a barrel.

Registering its third day of decline on Friday, the BSE bellwether gauge dropped 197.97 points or 0.25 per cent to settle at 77,860.19. The Nifty declined 43.40 points or 0.18 per cent to 23,559.95.