US-China spat singes global markets, Sensex falls 261 pts

Stocks remained subdued for the second straight day on Tuesday, owing to a sell-off across global markets after the US and China reignited their trade dispute.

The BSE Sensex plunged around 261 points to end at a two-week low of 35,286.74, while the broader Nifty dropped 89 points to 10,710.45.

Asian markets nosedived after US President Donald Trump threatened to impose additional tariffs on Chinese goods, and Beijing vowed to retaliate, fanning fears of a full-blown trade war between the world's two largest economies.

Unabated selling by foreign funds and a weak rupee added to the gloom, brokers said.

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