Stock markets decline, mirroring weak global peers as Trump imposes fresh tariffs on China

Mumbai: Benchmark indices Sensex and Nifty fell on Monday due to selling in IT and FMCG shares and a weak trend in global markets after US President Donald Trump announced an additional 100 per cent tariff on Chinese goods from November 1.

The 30-share BSE Sensex dropped 173.77 points or 0.21 per cent to settle at 82,327.05, snapping its two-day rally. During the day, it tanked 457.68 points or 0.55 per cent to 82,043.14.

The 50-share NSE Nifty declined 58 points or 0.23 per cent to 25,227.35 as 30 of its constituents closed lower, 19 with gains and one unchanged.

Among Sensex firms, Tata Motors, Infosys, Hindustan Unilever, Power Grid, Bharat Electronics, ITC, UltraTech Cement and Tata Consultancy Services were the major laggards.

However, Adani Ports, Bajaj Finance, Bajaj Finserv and Axis Bank were among the gainers.

In Asian markets, South Korea's Kospi, Shanghai's SSE Composite Index and Hong Kong's Hang Seng settled lower. Equity markets in Tokyo were closed due to a holiday. Stock markets in Europe were trading higher.

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.

"The domestic markets started the week on a cautious note as the ongoing US government shutdown and escalating US-China trade tensions triggered risk-off sentiment across Asia," Vinod Nair, Head of Research, Geojit Investments Limited, said.

Global oil benchmark Brent crude jumped 1.77 per cent to USD 63.84 a barrel.

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