Indices tracking global cues with fear of mounting trade war spat have fallen a huge in the afternoon session, with Sensex slipping as much as 400 points and Nifty also losing over 1% to trade near 11,700 points mark.
Sectoral wise metal index emerged as the biggest loser falling over 2%, followed by energy, oil and gas, bank and realty index.
Not only the US-China spat, now the India-US trade war situation looks unavoidable after the India has decided to impose retaliatory tariffs on 28 of the US goods. This is after the US decided to do away with the benefits provided to Indian exporters.
Also, all eyes are now on the FOMC meet scheduled for June18-19 and there is likely to be a resistance thrown at the rate cut by Fed.
The fall in the stock market today has further been led by banking majors because of the huge sell-off pressure, with banking stocks including the likes of Axis Bank, tumbling a great deal.
Biocon hits 52-week low despite getting CGMP from EU regulator for Bengaluru unit
Oil marketing companies gained ground after crude oil surged in price post the attack on the tanker.
Meanwhile, the rupee gained some strength and was trading higher at 69.79 per dollar.