Key barometers trimmed losses in mid-afternoon trade as buying emerged at lower levels. At 14:20 IST, the barometer index, the S&P BSE Sensex, was down 211.12 points or 0.59% at 35,337.14. The Nifty 50 index was down 76.40 points or 0.71% at 10,723.45. 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. Indices hit fresh intraday low in afternoon trade. Market pared losses in mid-afternoon trade as bargain hunting emerged at lower levels. The Sensex rose 4.21 points, or 0.01% at the day's high of 35,552.47 in early trade. The index fell 257.30 points, or 0.72% at the day's low of 35,290.96 in afternoon 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 91.30 points, or 0.85% at the day's low of 10,708.55 in afternoon trade.
Broader market witnessed selling pressure. Among secondary barometers, the BSE Mid-Cap index was down 1.09%. The BSE Small-Cap index was down 1.26%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 633 shares rose and 1735 shares fell. A total of 114 shares were unchanged.
Telecom shares declined. MTNL (down 2.91%), Tata Teleservices (Maharashtra) (down 1.42%), Reliance Communications (down 1.32%) and Idea Cellular (down 0.72%), edged lower. Telecom major Bharti Airtel was up 0.62%.
Telecom tower infrastructure provider Bharti Infratel was down 0.53%.
Most realty shares declined. Peninsula Land (down 6.35%), D B Realty (down 3.53%), Godrej Properties (down 2.99%), Sunteck Realty (down 2.34%), DLF (down 2.3%), Housing Development and Infrastructure (HDIL) (down 2.21%), Phoenix Mills (down 2.11%), Indiabulls Real Estate (down 2.03%), Anant Raj (down 1.65%), Prestige Estates Projects (down 0.91%), Oberoi Realty (down 0.73%), Omaxe (down 0.25%), Unitech (down 0.22%) and Sobha (down 0.18%), edged lower. Mahindra Lifespace Developers (up 0.81%) and Parsvnath Developers (up 1.34%), edged higher.
Overseas, European and Asian stocks edged lower after US President Donald Trump fired a fresh salvo in the ongoing trade spat between the US and China.
China's Shanghai Composite fell 3.78%. 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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