Markets slump on Trump tariff worries; Sensex tanks over 1,200 pts

Mumbai: Equity benchmark indices slumped on Tuesday dragged by blue-chip stocks amid heightened uncertainty about US President Donald Trump's reciprocal tariffs.

After a weak beginning, the 30-share BSE benchmark Sensex further tanked 1,233.95 points to 76,180.97 in late morning trade. The NSE Nifty dropped 321.5 points to 23,197.85.

From the Sensex pack, Bajaj Finserv, HDFC Bank, Bajaj Finance, Infosys, Axis Bank, HCL Tech, Titan, Tech Mahindra, Tata Consultancy Services and Sun Pharma were among the biggest laggards.

Among the gainers, IndusInd Bank jumped nearly 5 per cent.

Zomato also traded in the positive territory.

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

US markets ended mostly higher on Monday.

President Donald Trump plans to roll out a set of reciprocal tariffs on April 2, which he says will be "Liberation Day" for the US.

"Globally markets are focused on the details of Trump's reciprocal tariffs to be announced on April 2. The market trends after the announcements will depend on the details of the tariffs and how they will impact different countries and sectors," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said.

India outperformed most markets in March with 6.3 per cent return, he said.

"FIIs turning buyers and the consequent short covering contributed to the rally. Can the rally continue or will there be another downturn? This will depend mainly on what Trump announces in tariffs," Vijayakumar added.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,352.82 crore on Friday, according to exchange data.

Stock markets were closed on Monday for Eid-Ul-Fitr.

Global oil benchmark Brent crude climbed 0.20 per cent to $74.88 a barrel.

On Friday, the Sensex declined 191.51 points or 0.25 per cent to settle at 77,414.92. The Nifty dropped 72.60 points or 0.31 per cent to 23,519.35. PTI SUM DRR