Mumbai, Aug 5
The Indian stock market settled in negative territory on Tuesday amid a mixed reaction from investors following the US President Donald Trump's fresh tariff threat and India's stern reply to it.
Sensex closed at 80,710.25, down 308.47 points or 0.38 per cent. The 30-share index opened the session slightly down at 80.946.43 against last day's closing of 81,018.72. However, the index further extended the loss amid a mixed approach in Auto, and Consumer Durable stocks and selling in the Pharma and Consumer goods sector.
Nifty settled at 24,649.55, down 73 points or 0.30 per cent.
"Ahead of tomorrow’s monetary policy announcement, caution prevailed, and banking stocks came under renewed selling pressure during the second half of the session," it added.
Rupee traded weak at 87.80 as panic gripped markets following a late-evening post by the US President hinting at higher tariffs on India.
"Expectations that the US may pressure India to reduce Russian oil imports sparked fears of a higher import bill, pushing the rupee briefly below the 88.00 mark overnight," said Jateen Trivedi of LKP Securities.
Some recovery was seen after the Ministry of External Affairs clarified India’s stance on crude purchases, Trivedi added