Benchmark indices lost ground in trade, with the Sensex dropping 350 points and the Nifty losing 107 points in early trade, as US President Donald Trump imposed fresh tariffs on China. The Nifty fell below the 10,875 points for the first time since March.
Wall Street fell again on Thursday, abruptly reversing early gains after US President Donald Trump put concerns about the US-China trade war back in the spotlight, tweeting that he would impose an additional 10% tariff on $300 billion in Chinese imports.
Most Asian markets were trading lower, with the Japanese Nikkei dropping 2.43 per cent in trade, while the Hong Kong's Hang Sang fell as much as 2.40 per cent.
Among the top losers in trade were some of the heavyweights like HDFC Bank, HDFC and Reliance Industries.
Shares in Bharti Airtel was among the gainers, despite a tepid set of quarterly numbers. The stock was up 4 per cent in early trade. However, select software stocks saw some gains, thanks to a falling rupee. Infosys and TCS were among the early gainers in trade.
Among the early gainers from the Nifty pack was also Yes Bank.
Talwalkars Better Value Fitness fell to the lower end of the circuit filter, after reports that the company defaulted in the payment of term loan's interest aggregating to Rs 94 lakh which was due on July 31.
Meanwhile, the rupee dropped 25 paise to 69.30 against the dollar.