(Reuters) - Indian shares fell on Monday, in line with tumbling Asian markets, after U.S. President Donald Trump threatened to raise tariffs on $200 billion worth of Chinese goods, casting doubts over talks this week that were largely expected to reach a trade accord.
Tensions sharply escalated between the world’s two largest economies when Trump, in a tweet on Sunday, said trade talks with China were proceeding “too slowly”, and that he would raise tariffs on $200 billion of Chinese goods to 25 percent on Friday from 10 percent.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 2 percent as markets across the region fell deep into the red.
The broader NSE Nifty was down 0.83 percent at 11,615.25 as of 0631 GMT, while the benchmark BSE Sensex fell 0.81 percent to 38,649.50. Both the indexes had declined more than 1 percent earlier in the session.
“Today’s fall is by and large due to global factors,” said Krish Subramanyam, co-head, equity advisory, at Altamount Capital.
“Apart from that, the share market had a good run up in last couple of weeks. With corporate earnings trickling in, its just a reason for the markets to correct,” he said.
Automaker Tata Motors Ltd fell as much as 5.1 percent and was the top loser by percentage on both the indexes.
Private-sector lender Yes Bank Ltd was second in line, falling up to 5 percent, after ratings agency ICRA downgraded bank’s long-term ratings.
Shares of Tata Steel fell as much as 3.7 percent in their worst day in nearly three months on reports that Brussels is likely to block its merger with ThyssenKrupp AG.
Pharmaceutical firm Cadila Healthcare’s shares fell to a four-year low after the U.S. drug regulator gave out 14 observations after an inspection at its facility in Gujarat.
Jet Airways Ltd shares dropped as much as 7.7 percent after Reuters reported that the Indian government sees little hope of a bidder emerging for the debt-laden airline and it may have to face bankruptcy proceedings.
Reporting by Krishna V Kurup in Bengaluru; editing by Uttaresh.V