The BSE benchmark Sensex on Tuesday fell over 126 points, dragged mainly by losses in metal stocks, tracking weak global sentiments in the wake of slapping of tariffs by the US on imports from Brazil and Argentina. The 30-share BSE gauge settled at 40,675.45, down 0.31 per cent or 126.72 points.
The index swung between a high of 40,885.03 and a low of 40,554.04 during the day. The broader NSE Nifty settled at 11,994.20, showing a dip of 0.45 per cent or 54 points. In view of fresh tussle in the global trade, metal stocks came under pressure.
Besides, banking stocks saw selling pressure as investors took a cautious stance ahead of the RBI monetary policy meet. On the Sensex chart, Yes Bank was the worst hit with 7.81 per cent decline.
It was followed by Tata Steel, Vedanta, M&M, IndusInd Bank and Tata Motors—shedding as much as 5.07 per cent. On the other hand, Bajaj Auto, TCS, Kotak Bank, Infosys and HDFC were among the major gainers.
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.
(With inputs from PTI)