MUMBAI: Indian shares dropped on Monday after US President Donald Trump imposed sweeping tariffs on Canada, Mexico and China, spurring concerns of a broader trade war.
The Nifty 50 was down 0.52% at 23,361.05, while the BSE Sensex shed 0.41% to 77,186.74.
Asian and European stock markets slumped as Trump’s tariffs triggered fears of a hit to global growth.
Ten of the 13 major domestic equity sectors declined on the day, while the domestically focussed smallcaps and midcaps lost 2.1% and 0.9%, respectively.
The Indian rupee weakened past 87 per US dollar for the first time as other regional currencies slumped.
“The Trump tariffs could severely disrupt global trade, slowing economic growth worldwide, which is spooking markets,” said Anirudh Garg, partner and fund manager at Invasset Portfolio Management Services.
“Indian markets are at a critical crossroads; the capex-driven sectors are now taking a backseat as their growth momentum has subsided while consumption-linked segments are set to gain,” Garg said.
State-owned companies declined 3.2%, taking their two-session loss to 6.2% and erasing all gains made in the pre-budget rally last week.
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