In India, a cut in the repo rate, along with an accommodative policy stance, is taken as a constructive step. However, it has done little to uplift overall market sentiment, as the world is embracing recessionary risk, said Vinod Nair, head (research), Geojit Investments

Mumbai: Benchmark equity indices Sensex and Nifty closed lower on Wednesday in line with losses in global markets amid escalating trade tensions, even as the Reserve Bank cut policy rates for a second consecutive time as it sought to bolster the economy in the face of further pressure from damaging US tariffs.

The 30-share BSE Sensex dropped 379.93 points or 0.51 per cent to settle at 73,847.15. During the day, it slumped 554.02 points or 0.74 per cent to a low of 73,673.06. The NSE Nifty declined 136.70 points or 0.61 per cent to 22,399.15. Intra-day, it tanked 182.6 points or 0.81 per cent to 22,353.25. Mirroring weak trends in Asian equities, domestic key equity indices opened lower and remained in the negative territory throughout the session after the US imposed a fresh set of tariffs, including a whopping 104 per cent levy on Chinese imports.

“Global financial markets are witnessing renewed selling pressure following the enactment of reciprocal tariffs. A trade war is escalating global risk, with a rise in US bond yields prompting a sell-off in the world’s safe treasury assets. In India, a cut in the Repo rate, along with an accommodative policy stance, is taken as a constructive step.

“However, it has done little to uplift overall market sentiment, as the world is embracing recessionary risk,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

State Bank of India, Tech Mahindra, Larsen & Toubro, Tata Steel, Sun Pharma, Infosys, HCL Tech, Axis Bank, Tata Consultancy Services and NTPC were among the biggest laggards among Sensex shares.