MUMBAI: Indian shares inched lower on Monday, weighed down by IT stocks and tracking losses in Asia after the United States issued fresh tariff threats against China, while investors awaited domestic retail inflation data for September.
The Nifty 50 was down 0.23 percent at 25,227.35, while the BSE Sensex declined 0.21 percent to 82,327.05. The broader small-caps dropped 0.2 percent and mid-caps added 0.1 percent.
Other Asian markets fell 1.2 percent after US President Donald Trump threatened to sharply hike tariffs on China in a reprisal against its curb on critical mineral exports.
However, reports of India and the US sticking to a fall 2025 deadline for the first part of a trade deal between the countries helped limit losses on the benchmarks.
Renewed US-China tensions have raised fears of higher inflation and interest rates in the United States. Elevated US yields typically strain emerging markets like India by pulling global capital towards the dollar and US Treasuries.
“Trump’s tariff threat on China has rattled global equity markets,” said Kranthi Bathini, director of equity strategy at WealthMills Securities.
“With the two economies so closely tied, even small flare-ups can trigger sharp market reactions. Some foreign flows may shift towards India, but the market’s direction will hinge on India–US trade talks and the ongoing earnings season.”
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