By Bharath Rajeswaran and Vivek Kumar M
(Reuters) -Indian shares fell in early trades on Tuesday, with the blue-chip Nifty 50 in the red for the tenth consecutive session, as United States’ imposition of tariffs on key trading partners China, Canada and Mexico roiled global markets.
The Nifty fell 0.20% to 22,076.1 by 10:23 a.m. IST, while the BSE Sensex lost 0.18% to 72,953.23.
If the losses hold until close, the Nifty will log its longest daily losing streak since its launch three decades ago. The index has fallen about 4% in 10 sessions and 16% from its peak in September.
“In the near-term, there are no chances of a rebound in the Indian market even though valuations are fair. Investors should remain cautious and wait to see how the scenario (on tariffs)unfold,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
U.S. President Donald Trump’s 25% tariffs on Canada, Mexico and a cumulative 20% tariff on China will go into effect from 10:31 a.m. IST on Tuesday. Trump also said reciprocal tariffs will start on April 2, escalating trade tensions and dragging financial markets.
Higher tariffs, besides their potential adverse impact on global growth, could spur inflation in the U.S., leading to higher interest rates for longer and hurting flows into emerging markets such as India.
The MSCI Asia ex-Japan dropped about 0.4%, tracking an overnight decline in Wall Street equities. [MKTS/GLOB]
Seven of the 13 major sectors logged losses, with export-focused information technology, pharma and auto stocks hit the hardest.
IT companies, which get a substantial portion of their revenue from the U.S., fell 1%, with Infosys and Tech Mahindra falling about 2% each.
Data signalling rise in price pressures in the U.S. also hurt IT stocks.
ASK Automotive rose the maximum-allowed 5% on a partnership with Japan’s Kyushu Yanagawa Seiki to manufacture high-pressure diecast alloy wheels for two-wheelers.
(Reporting by Bharath Rajeswaran and Vivek Kumar M in Bengaluru; Editing by Varun H K and Mrigank Dhaniwala)
