Sensex, Nifty End Modestly Lower As IT Stocks Drag

(RTTNews) - Indian shares fell on Thursday after U.S. President Donald Trump announced a 10 percent universal tariff on most imported goods along with additional high tariffs on countries the U.S. considers "worst offenders" based on trade deficits and non-tariff barriers.

The move that marks one of the boldest protectionist pushes in recent history sparked concerns over inflation and growth.

That said, overall losses remained modest amid optimism that India will gain a competitive advantage in international trade and strengthen its manufacturing capabilities in the medium to long run.

A lower tariff of 26 percent has been levied on Indian products compared to China and Vietnam, which have been slapped with much higher tariffs of 34 percent and 46 percent, respectively.

Also, initial assessments suggest a favorable position for India compared to other Asian countries such as Taiwan, Thailand and Bangladesh.

The benchmark S&P/BSE Sensex dropped 322.08 points, or 0.42 percent, to 76,295.36 amid concerns about economic growth prospects as well as exports growth in the short term.

There were fears that a full-blow trade war may fuel inflationary pressures and weigh on global growth.

The broader NSE Nifty index fell 82.25 points, or 0.35 percent, to 23,250.10 while the BSE mid-cap and small-cap indexes rose 0.3 percent and 0.8 percent, respectively.

The market breath was positive on the BSE, with 2,816 shares rising while 1,168 shares declined, and 139 shares closed unchanged.

IT and auto stocks led losses, with Tata Motors, Infosys, HCL Technologies, Tech Mahindra and TCS falling 3-4 percent.

Among the top gainers, Asian Paints, NTPC, UltraTech, Sun Pharma and Power Grid Corp surged 2-4 percent.