Equity markets edged lower on Tuesday as US President Donald Trump fanned fears of yet another trade war. In a tweet on Monday, Trump said that the US would restore, with immediate effect, tariffs on all steel and aluminium that are shipped into the US from Brazil and Argentina.
Consequently, metal stocks slipped up to 11 per cent at the bourses. Among individual stocks, Jindal Steel, Tata Steel, JSW Steel, and Vedanta were the worst hit.
At the index level, the benchmark S&P BSE Sensex closed at 40,675.45 level, down 126.72 points, or 0.31 per cent. On the NSE, the Nifty50 failed to hold the crucial 12,000-mark and settled 54 points, or 0.45 per cent, lower at 11,994-mark.
Sectorally, Nifty PSU Bank index skid the most, down nearly 3 per cent as investors turned cautious ahead of the RBI's fifth bi-monthly monetary policy review. The central bank is expected to cut interest rate by 25 basis points on December 5.
Overall, the market breadth remained weak, with nearly 2 stocks declining for every one stock that advanced on the BSE.
In the broader market, the S&P BSE mid-cap index slipped close to a per cent to end at 14,825, while the S&P BSE small-cap index shed 0.7 per cent to close at 13,411.
Now a development that could further hurt consumer pockets; India's largest carmaker Maruti Suzuki India has announced to increase prices of its vehicles from January. Without giving details on the quantum of the price hike, the company said price increase shall vary for different models, and were being increased to off-set high input costs
Here is how Asian markets fared in today's trade:
Asian shares fell on Tuesday after US President Donald Trump stunned markets by imposing tariffs on imports from Brazil and Argentina.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.43 per cent as Australian shares recorded their worst day in two months with a 2.2 per cent drop. Japan’s Nikkei shed 0.64 per cent.