BSE benchmark Sensex closed lower by about 74 points at 35,548.26 in a choppy trade today amid flaring up of trade tariff tensions between the US and China, forcing investors to adopt a cautious stance.
US President Donald Trump on Friday slapped a 25 per cent tariff on USD 50 billion worth of Chinese goods, as he accused Beijing of intellectual property theft and unfair trade practices, triggering a full-fledged trade war between the world's two largest economies.
Reacting to Trump's latest announcement, China said it has imposed "equal" tariffs on US products. The 30-share Sensex opened on a somewhat better note at 35,698.43 and slipped further to touch a high of 35,721.55, largely on sustained capital inflows by domestic institutional investors (DIIs) and a drop in global crude prices.
However, absence of cues from other Asian markets as most financials were shut today for a public holidays and a weak opening in European shares reversed the early gains, with the gauge hitting a low 35,518.73. It finally ended at 35,548.26, down 73.88 points, or 0.21 per cent.
The barometer had gained 22.32 points in the previous session on Friday. The 50-share NSE Nifty cracked the 10,800-mark by falling 17.85 points, or 0.16 per cent, to close at 10,799.85. During the session, it moved between 10,830.20 and 10,787.35.
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net of Rs 1,524.74 crore, while domestic institutional investors (DIIs) bought equities to the tune of Rs 561.01 crore on Friday, provisional data showed.