Mumbai: The BSE benchmark Sensex extended losses for the second session Tuesday by plummeting 295 points to close at an over one-month low of 37,291 owing to hectic selling in financial and auto stocks amid escalating US-China trade tariff tensions and worsening rupee woes.
The broader NSE Nifty too fell over 98 points to crack below the 11,300-mark. Besides, rising crude oil prices further dampened investors’ mood.
The domestic currency was trading lower by 27 paise at 72.78 (intra-day) against the US dollar in late afternoon deals.
Globally, sentiments took a hit after US President Donald Trump Monday announced imposition of new tariffs on an additional USD 200 billion worth of imports from China, escalating the trade war with the Asian giant.
Alleging that China has been unwilling to change its unfair trade practices, Trump said the new additional tariff structure would be effective September 24 from when it would be at 10 per cent until the year end, but would increase to 25 per cent level from January 1.
The 30-share Sensex opened Tuesday on a somewhat better note at 37,660.19 and advanced to touch a high of 37,745.44 but later turned choppy and hit a low of 37,242.85 as selling pressure gathered momentum towards the fag-end, before settling 294.84 points, or 0.78 per cent, down at 37,290.67.
This was the lowest closing since August 2 when it had settled at 37,165.16. The 30-scrip gauge had lost 505.13 points Monday.
The 50-share NSE Nifty Tuesday plunged 98.65 points, or 0.87 per cent, to end at 11,278.90.
During the session, it moved between 11,411.45 and 11,268.95. Domestic institutional investors (DIIs) sold shares worth Rs 180.36 crore, while foreign portfolio investors (FPIs) also offloaded shares to the tune of Rs 106.54 crore Monday, provisional data showed.
“In the near term, we continue to maintain a cautious stance on the markets as volatility and choppiness is likely to remain high led by uncertain global cues, crude oil price movement, depreciating rupee (vs dollar) and muted domestic sentiments.
However any further correction at this juncture should be considered as a healthy buying opportunity for investors in quality companies with strong financials and bright outlook,” an analyst commented. (PTI)
