Sensex, Nifty Open Lower: Tariff Threats, Weak Asian Markets Weigh

Mumbai, Feb 20 (PTI) Benchmark indices Sensex and Nifty declined in initial trade on Thursday as fresh tariff threats, weak Asian markets and foreign fund outflows hurt investors' sentiment.

The 30-share BSE benchmark Sensex dropped 393.01 points to 75,546.17 in early trade. The NSE Nifty declined 118.95 points to 22,813.95.

From the Sensex pack, HDFC Bank, ITC, Maruti, Mahindra & Mahindra, Zomato and Hindustan Unilever were among the biggest laggards.

NTPC, Infosys, Reliance Industries and Adani Ports were among the gainers.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,881.30 crore on Wednesday after a day's breather, according to exchange data.

"Trump's tariff talks continue to impact markets. Trump's declaration that the US will impose 25% tariffs on automobiles, semiconductors and pharmaceuticals impacted India's pharma stocks since India's leading pharma companies are major exporters to the US. If this is implemented in early April as Trump declared, it will impact the US, too, through shortages and higher prices," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading in the negative territory.

"Market participants in Asia were primarily concerned about the potential ramifications of the tariff plans on global trade dynamics. Given this backdrop, it is anticipated that Indian bourses will move in tandem with their Asian counterparts," Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox, said.

US markets ended in the positive territory on Wednesday.

"President Trump's proposed 25% tariffs on imports like automobiles, semiconductors, and pharmaceuticals, set to begin on April 2, could disrupt global trade," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

Global oil benchmark Brent crude dipped 0.32 per cent to USD 75.80 a barrel.

The Sensex dipped 28.21 points or 0.04 per cent to settle at 75,939.18 on Wednesday. The Nifty skidded 12.40 points or 0.05 per cent to 22,932.90.