Stock markets decline in early trade mirroring weak global peers

Mumbai: Benchmark indices Sensex and Nifty fell in early trade on Monday, tracking a sharp decline in global markets after the US announced an additional 100 per cent tariff on Chinese goods effective November 1.

The 30-share BSE Sensex dropped 451.82 points to 82,049 in early trade. The 50-share NSE Nifty declined 109.55 points to 25,175.80.

From the Sensex firms, Tata Motors, Bharat Electronics, Tata Steel, Infosys, NTPC and Axis Bank were among the major laggards.

However, Asian Paints, Bharti Airtel, Maruti and Eternal were among the gainers.

In Asian markets, South Korea's Kospi, Shanghai's SSE Composite Index and Hong Kong's Hang Seng were trading sharply lower.

US markets ended significantly lower on Friday. The Nasdaq Composite tanked 3.56 per cent, while the S&P 500 tumbled 2.71 per cent and the Dow Jones Industrial Average dropped 1.90 per cent.

"Investor sentiment turns cautious after the US announced a 100 per cent tariff on all Chinese goods effective November 1, rekindling fears of a renewed trade war. Although President Trump later softened his stance, saying the US does not intend to “hurt China,” which led to a recovery in US stock futures, investor caution persists amid renewed global uncertainty," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Global oil benchmark Brent crude jumped 1.48 per cent to USD 63.66 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth Rs 459.20 crore on Friday, according to exchange data.

On Friday, the Sensex jumped 328.72 points or 0.40 per cent to settle at 82,500.82. The Nifty advanced 103.55 points or 0.41 per cent to settle at 25,285.35.