Key benchmark indices extended early losses and hit fresh intraday low in morning trade. At 10:19 IST, the barometer index, the S&P BSE Sensex, was down 145.19 points or 0.41% at 35,403.07. The Nifty 50 index was down 49.65 points or 0.46% at 10,750.20. The Indian market mirrored a weak trend in the global market as the trade spat between the US and China intensified. Unabated capital outflows by foreign funds too dampened sentiment.
The market opened almost flat and turned weak as the session progressed. The Sensex rose 4.21 points, or 0.01% at the day's high of 35,552.47 in early trade. The index fell 150.30 points, or 0.42% at the day's low of 35,397.96 in morning trade. The Nifty fell 10.40 points, or 0.10% at the day's high of 10,789.45 in early trade. The index fell 53.15 points, or 0.49% at the day's low of 10,746.70 in morning trade.
Among secondary barometers, the BSE Mid-Cap index was down 0.37%. The BSE Small-Cap index was down 0.33%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On BSE, 749 shares rose and 1186 shares fell. A total of 90 shares were unchanged.
Metal shares were mixed. National Aluminium Company (up 1.38%), JSW Steel (up 0.78%), Tata Steel (up 0.67%), Steel Authority of India (up 0.58%) and Jindal Steel & Power (up 0.28%), edged higher. Hindustan Copper (down 0.21%), NMDC (down 0.31%), Hindalco Industries (down 0.74%), Hindustan Zinc (down 1.16%) and Vedanta (down 2.28%), edged lower.
Most FMCG shares declined. Tata Global Beverages (down 2%), Marico (down 1.23%), Procter & Gamble Hygiene & Health Care (down 1.02%), Hindustan Unilever (down 0.99%), Britannia Industries (down 0.89%), GlaxoSmithKline Consumer Healthcare (down 0.73%), Colgate Palmolive (India) (down 0.67%), Dabur India (down 0.58%) and Bajaj Corp (down 0.27%), edged lower. Nestle India (up 0.19%), Godrej Consumer Products (up 0.55%) and Jyothy Laboratories (up 0.77%), edged higher.
Overseas, Asian stocks were trading lower after US President Donald Trump fired a fresh salvo in the ongoing trade spat between the US and China.
China's Shanghai Composite was down 2.97%. Trump said on Monday that he had asked the US Trade Representative to identify $200 billion worth of Chinese products that will be subject to additional tariffs of 10%. Those tariffs will take effect if China did not "change its practices".
China's Commerce Ministry said on Tuesday morning that it will take counter measures if the US publishes an additional tariffs list. China will protect its interests, taking both quantitative and qualitative measures against the move.
Trump's Monday comments came after the US on Friday announced that it would impose a 25% tariff on up to $50 billion of Chinese products. Tariffs on an initial list of goods worth some $34 billion will kick in on 6 July. In response, China announced tariffs on the same total value of products, with duties on $34 billion of US goods expected to be implemented in July.
In US, the Dow Jones Industrial Average registered its fifth straight decline Monday, but stocks broadly managed to finish above session lows as gains in energy and technology shares helped to limit declines partly inspired by fears over trade tensions between the US and China.
On the US data front, the National Association of Home Builders' monthly confidence index fell two points to 68 in June, in part due to rising lumber costs.
On the Federal Reserve front, Atlanta Fed President Raphael Bostic said Monday at the Rotary Club of Savannah that the central bank still hasn't reached the so-called neutral rate where policy is neither accommodative nor restrictive.
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