Indian stock markets opened in the negative on Tuesday in line with global market sell-offs as investors panicked after the US decision to impose tariffs on Argentina and Brazil. In the early trade, the 30-share index was trading 65.51 points, or 0.16 per cent, lower at 40,736.66. Also, the Nifty slipped 23.75 points, or 0.20 per cent to 12,024.45.
According to a report of PTI, top gainers in the Sensex pack included Bajaj Auto, Tata Motors, SBI, Bajaj Finance, and Maruti. On the other hand, Tata Steel, Vedanta, IndusInd Bank, Bharti Airtel, ONGC, and Axis Bank trading in the red.
Asian markets fell on Tuesday as global trade tensions surfaced again after the US decision to impose tariffs on the South American countries. Bourses in Hong Kong, Seoul, Shanghai, and Tokyo were trading in the negative zone. Whereas, Brent futures, the global oil benchmark, surged 0.31 per cent to USD 61.11 per barrel.
In the meantime, on the currency front, the Indian rupee appreciated by 8 paise to 71.58 against the US dollar, as investors were hopeful that the Reserve Bank will go for another rate cut to boost economic growth.
On Monday, the Sensex closed marginally higher by 8.36 points or 0.02 per cent at 40,802.17. On the other hand, the broader NSE Nifty settled 7.85 points or 0.07 per cent down at 12,048.20.
It is worth mentioning here that US President Donald Trump's on Monday said he would re-impose steel and aluminium tariffs on Brazil and Argentina. He alleged that both the countries are manipulating their currencies and hurting American farmers. The US also threatened to impose tariffs of up to 100 per cent on French goods in retaliation for digital services tax. These developments triggered fresh tension among investors, particularly on spillover concerns over the US-China trade war.