In the early-morning trade, Sensex and Nifty fell sharply led by metal stocks and Tata Motors stock. The decline has come aided by the nervousness in the Asian markets after Trump vowed to impose higher tariffs on some of the Chinese goods from Friday.
Sensex declined as much as 450 points, while Nifty tested levels of 10,600. Here are major reasons:
Trump's comments: Trump on Sunday vowed to increase tariffs on China after previously deferring it on hopes of positive developments between the two economies.
Some other factors that have aided the drop include:
The 5th phase of polling: As the fifth polling phase of Lok Sabha elections begin today, investors held a cautious outlook which sends markets on a topsy turvy.
Earnings for Q4FY19: So far earnings provide for a slow growth situation for the overall economy which has not augured well for the capital markets and today's market condition reflect the same.
Oil price increase: Commodities all across have taken a hit after the comments of Trump and crude is said to surge by 2%.
Foreign flows hit due to US-China tension: While March recorded the highest inflow of Rs. 33,980 crore, FPIs for the current month have withdrawn Rs. 367.30 crore, providing a downside to the stock markets in India.