Indian equities extended their fall for the fourth straight session today, with the BSE Sensex plunging by over 300 points and the NSE Nifty by nearly 100 points after fears of a global trade war rattled investors.
The benchmark Sensex slipped to a near two-week low of 33,747 as market participants weighed the likely impact of US President Donald Trump's plans to levy stiff tariffs on steel and aluminium imports, triggering a free fall in metal stocks.
Asian bourses too succumbed to the pressure emanating from the US tariff plans on steel and aluminium imports.
Investors' sentiment was further dampened after a monthly survey showed India's services sector growth contracted in February and fell to a six-month low, as new work orders suffered amid weak underlying demand conditions.
The seasonally adjusted Nikkei India Services Business Activity Index fell from 51.7 in January to 47.8 in February, its lowest level since August.
"Global headwinds on account of US governments plans to impose tariff on imported metals slid the domestic market. Metal index lost its sheen while strength in rupee supported the market to recoup some loses towards close. But the recovery is not broad based as mid & small cap continue to under-perform due to expensive valuation," Vinod Nair, Head of Research, Geojit Financial Services Ltd, said.
The 30-share barometer resumed lower and fell to a low of 33,653.41 in intra-day trade. The index settled at 33,746.78, down 300.16 points, or 0.88 per cent. The gauge had lost 398.81 in the previous three sessions.
This was the lowest closing for the Sensex since February 20 when it had finished at 33,703.59.
The 50-scrip NSE Nifty too cracked below the 10,400-mark and hit a low of 10,323.90, before finishing 99.50 points, or 0.95 per cent, down at 10,358.85.
Indian equities free fall continued despite the positivity following the BJP's strong showing in three Northeastern states.
Besides, heavy FII outflow in February and the ongoing turmoil in the banking sector remained a continuous source of worry for the investors.
Metal indices suffered the most by plunging 3.30 per cents after the US proposed to impose a import tariff of 25 per cent on steel and 10 per cent on aluminium.
The session saw selling in metal stocks such as NMDC 5.85 per cent followed by National Aluminium 4.98 per cent, JSW Steel 4.68 per cent, Jindal Steel 4.32, Hindalco 4.29 per cent, SAIL 3.58 per cent, Tata Steel 2.95 per cent, Vedanta 2.51 per cent and Hindustan Zinc 0.71 per cent.
Other sectoral indices led by oil & gas, auto, FMCG, PSU, capital goods, infrastructure, power, realty, healthcare and banking stocks were trading in the negative terrain, falling up to 1.81 per cent.
However, IT, consumer durables and teck ended in the green.
Among Sensex constituents, tata motors suffered the most by diving 5.04 per cent, followed by Bajaj Auto 2.73 per cent.
Other big losers were RIL (2.48 per cent), Coal India (2.33 per cent), ONGC (2.14 per cent), Dr Reddy's (2.05 per cent), Yes Bank, (1.95 per cent), HUL (1.90 per cent), Bharti Airtel (1.30 per cent), ITC LTD (1.27 per cent), Asian Paints (1.26 per cent), HDFC LTD (1.25 per cent), L&T (0.87 per cent), Maruti Suzuki (0.86 per cent), ICICI Bank (0.70 per cent), Infosys (0.62 per cent), Hero Motocorp (0.61 per cent), Wipro (0.50 per cent) and Axis Bank (0.47 per cent).
However, Sun Pharma rose 2.50 per cent followed by TCS 2.21 per cent, M&M 0.81 per cent and SBI 0.48 per cent.
Small and mid-cap indices fell 1.09 per cent and 0.95 per cent in today's session, respectively.
Shares of Gitanjali Gems fell by another 5 per cent today after the CBI made four arrests in connection with the alleged Rs 12,636-crore fraud at Punjab National Bank (PNB) perpetrated by billionaire jewellers Nirav Modi and his uncle Mehul Choksi.
This is the 13th straight session of fall for the stock. It has lost as as much as 70 per cent since February 14, the day the PNB fraud came to light.
Punjab National Bank also ended lower by 0.94 per cent.
Shares of Aurobindo Pharma ended 3.73 per cent lower amid reports that the company has received observations from the US health regulator for one of its Hyderabad units.
According to a media report, the US Food and Drug Administration (USFDA) has issued Form 483 with 9 observations to Aurobindo Pharma's unit 4 in Hyderabad, citing serious deficiencies in maintaining the manufacturing quality standards.
Hong Kong's Hang Seng finished 2.28 per cent lower, while Japan's Nikkei fell 0.66 per cent.
European shares opened slightly higher in their early deals.Frankfurt's DAX was up 0.59 per cent and Paris CAC 40 rose 0.42 per cent. London's FTSE too higher 0.41 per cent.
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