Sensex, Nifty Fall Over 1% On Trade War Fears; IT Stocks Hit Hard

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Sensex, Nifty Fall Over 1% On Trade War Fears; IT Stocks Hit Hard

(RTTNews) - Indian shares were deep in the red on Friday after U.S. President Donald Trump said his proposed 25 percent tariffs on Mexican and Canadian goods will take effect on March 4 along with an extra 10 percent duty on Chinese imports over the fentanyl opioid crisis, deepening the fear of a global trade war.

Trump's tariff plans also sparked concerns about inflation, interest rates and economic growth.

The benchmark S&P/BSE Sensex was down 972 points, or 1.3 percent, at 73,640 in early trade while the broader NSE Nifty index fell 290 points, or 1.28 percent, to 22,255.

Among the prominent decliners, Infosys, Tech Mahindra, Wipro, Mahindra & Mahindra and IndusInd Bank tumbled 3-5 percent.

Tata Power fell more than 1 percent and Rail Vikas Nigam declined 1.7 percent despite winning new orders.

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China's industrial production increased more than expected in April despite trade tariff hikes and the unemployment rate dropped marginally but growth in retail sales fell short of expectations signalling weaker domestic demand, official data revealed on Monday. Industrial output logged an annual growth of 6.1 percent in April after rising 7.7 percent in March.
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Thai Downgrades GDP Growth Outlook

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Thailand's economy is projected to expand less than the previous estimate this year as trade tariffs are likely to dampen exports in the second half of the year, the National Economic and Social Development Council said Monday. Southeast Asia's second largest economy is forecast to grow in the range of 1.3 percent to 2.3 percent this year. This was down from the previous outlook of 2.3 percent-
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