Markets open lower dragged by IT stocks on tariff worries

Equity benchmark indices slumped in early trade on Tuesday dragged by IT stocks amid uncertainty about Trump reciprocal tariffs.

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The 30-share BSE benchmark Sensex dropped 639.13 points to 76,775.79 in early trade. The NSE Nifty declined 180.25 points to 23,339.10.

From the Sensex pack, Infosys, Tata Consultancy Services, Bajaj Finance, HDFC Bank, Axis Bank, Bajaj Finserv, HCL Tech, and Maruti were among the biggest laggards.

Among the gainers, IndusInd Bank jumped nearly 5 per cent. Power Grid, Bharti Airtel, Mahindra & Mahindra, Adani Ports, Nestle and NTPC were also trading in the positive territory.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading in the positive territory. US markets ended mostly higher on Monday.

President Donald Trump plans to roll out a set of reciprocal tariffs on April 2, which he says will be “Liberation Day” for the US.

“Globally markets are focused on the details of Trump's reciprocal tariffs to be announced tomorrow. The market trends after the announcements will depend on the details of the tariffs and how they will impact different countries and sectors,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

India outperformed most markets in March with 6.3 per cent return, he said.

“FIIs turning buyers and the consequent short covering contributed to the rally. Can the rally continue or will there be another downturn? This will depend mainly on what Trump announces in tariffs,” Vijayakumar added.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,352.82 crore on Friday, according to exchange data.

Stock markets were closed on Monday for Eid-Ul-Fitr.

Global oil benchmark Brent crude jumped 1.51 per cent to USD 74.74 a barrel.

The 30-share BSE benchmark declined 191.51 points or 0.25 per cent to settle at 77,414.92 on Friday. The Nifty dropped 72.60 points or 0.31 per cent to 23,519.35.