Sensex Falls 296 Points On Tariff Worries; Nifty Closes Below 24,800

(RTTNews) - Indian shares fluctuated before ending lower on Thursday as U.S. President Donald Trump imposed a 25 percent tariff on India starting August 1, along with an additional unspecified penalty for buying oil and defense equipment from Russia.

Analysts said the move will hurt a spate of sectors — from makers of electronics and generic drugs to jewelry and auto component firms.

Trump also criticized India-Russia ties, announced a Pakistan oil deal and imposed sanctions on six Indian companies for importing oil and petrochemical products from Iran, potentially derailing ongoing trade negotiations.

Trump said he does not care about India's trade dealings with Russia and that the two "can take their dead economies down together".

The Indian government has released a statement saying that it will put national interest first in finalizing any trade agreement.

"The Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs. The government will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the U.K.," according to a statement from the ministry of commerce & industry.

The benchmark BSE Sensex fluctuated before ending the session down 296.28 points, or 0.36 percent, at 81,185.58 while the broader NSE Nifty index closed at 24,768.35, down 86.70 points, or 0.35 percent, from its previous close.

The BSE mid-cap and small-cap indexes fell 0.7 percent and 0.9 percent, respectively. The market breadth was weak on the BSE, with 2,414 shares declining while 1,599 shares advanced and 140 shares closed unchanged.

Among the prominent decliners, Larsen & Toubro, Asian Paints, NTPC, Reliance Industries, Adani Ports, Sun Pharma and Tata Steel lost 1-2 percent.

FMCG stocks saw defensive buying, with Hindustan Unilever rallying 3.5 percent and ITC rising 1 percent.