Sensex, Nifty End With Modest Losses; IT And Auto Stocks Drag

(RTTNews) - Indian shares ended slightly lower on Tuesday amid concerns that U.S. President Donald Trump's "tariffs on steroids" agenda may keep inflation higher and could tip the global economy into recession.

Fears of a global trade war intensified as Trump's long-threatened tariffs against Canada, Mexico and China went into effect today, triggering retaliation from Canada and China.

In response to new U.S. tariffs, Canada announced 25 percent tariffs on $107 billion worth of U.S. goods, with $20.7 billion in immediate effect. Mexican President Claudia Sheinbaum said her country is preparing countermeasures.

China has announced 15 percent tariffs on U.S. chicken, wheat, corn and cotton, plus 10 percent cent tariffs on soybeans, pork, beef and dairy beginning March 10.

Uncertainty about prospects of peace in Ukraine, signs of a weakening U.S. economy and continued selling by FIIs also weighed on markets, while easing oil prices offered some respite and helped limit overall losses in the broader market.

Oil held overnight losses and hovered near a three-month low amid growth concerns and expectations of excess supply in the market after OPEC+ signaled plans to revive halted production.

The benchmark S&P/BSE Sensex ended the session down 96.01 points, or 0.13 percent, at 72,989.93 while the broader NSE Nifty index slid 36.65 points, or 0.17 percent, to close at 22,082.65.

The BSE mid-cap finished marginally higher and the small-cap index rallied 1.3 percent.

The market breadth was positive, with 2,217 shares rising while 1,740 shares declined and 129 shares ended unchanged.

Financials, IT and auto stocks led losses, with Eicher Motor, HCL Technologies, Bajaj FinServ, Hero MotoCorp and Bajaj Auto falling 2-5 percent.