Sensex slumps 260 points as US-China trade war escalates

NEW DELHI: Equity indices on Tuesday saw a disappointing day as trade war between economic heavyweights US and China escalated, weighing down global cues.


30-share BSE Sensex lost 261.52 points to close at 35,286.74 while the broader 50-share NSE Nifty lost almost a per cent finishing slightly above 10,700.

On Tuesday, US President Donald Trump threatened to impose a 10 per cent tariff on $200 billion of Chinese goods and Beijing warned it would retaliate. Trump's latest move, as Washington fights trade battles on several fronts, was unexpectedly swift and sharp. It was retaliation, he said, for China's decision to raise tariffs on $50 billion in US goods, which came after Trump announced similar tariffs on Chinese goods on Friday.

At Dalal Street on Tuesday, auto, IT, metal and PSU Bank sub-indices shed more than a per cent each.

ITC, ONGC and HDFC Bank stocks managed to salvage some gains on an otherwise discouraging day for investors.


Stay informed with the latest Business News on Times of India. Explore updates on International Business, gain insights with Financial Literacy tips, and make use of Financial Calculators. Don’t forget to check the list of Bank Holidays in 2025, including Bank Holidays in January.