Indian shares opened lower on Monday, tracking losses in broader Asia, amid escalating Sino-US trade tension. Unrest in Jammu & Kashmir also added to the losses. Prime Minister Narendra Modi's government has proposed to revoke Article 370 and Article 35A, which gives special rights and privileges to the citizens of Jammu and Kashmir in government jobs and land. Home minister Amit Shah moved a resolution in the Rajya Sabha today to abolish the law. He also proposed a new bill for the reorganization of Jammu and Kashmir.
Weak corporate earnings and continued selling by foreign investors in domestic equities also weighed on investor sentiment.
At 9:50 AM, the BSE Sensex fell 609 points at 36,509, while the broader Nifty50 index lost 192 points at 10,805.
Meanwhile, Asian shares slid to 6-1/2-month lows after US President Donald Trump abruptly declared he would slap 10 percent tariffs on $300 billion in Chinese imports, ending a month-long trade truce. China vowed on Friday to fight back.
All sectoral indices, except Nifty IT, were trading in the red. The Nifty PSU Bank index fell the most, down 5 percent, followed by Nifty Metal which was down 4 percent. Nifty Bank declined 2.9 percent while Nifty Pvt Bank fell 2.7 percent. Nifty Auto and Nifty Realty also lost over 2 percent.
Only two stocks, TCS and Infosys, were trading in the green in the Nifty 50 index.
IT was the only sector in the green, helped by weakness in the rupee. The rupee opened lower against the US dollar on Monday, extending losses from the previous session. TCS gained 1.3 percent, while Infosys was up 0.7 percent.
SBI shares fell over 4 percent after the brokerages cut price targets for the stock following lower-than-expected quarterly earnings.
First Published: IST