Market Performance - Equity benchmark indices Sensex and Nifty fell sharply by nearly 1 per cent, marking the fourth consecutive session of decline due to renewed concerns over potential US tariff hikes and widespread selling pressure in global markets [1][7] - The 30-share BSE Sensex dropped 780.18 points, or 0.92 per cent, closing at 84,180.96, with an intraday low of 84,110.10, down 851.04 points or 1 per cent [3] - The 50-share NSE Nifty tumbled 263.90 points, or 1.01 per cent, to settle at 25,876.85 [3] Sector Performance - Significant losses were observed in metal, oil & gas, and commodity stocks, exacerbated by ongoing foreign fund outflows [3] - Among the 30-Sensex firms, major laggards included Larsen & Toubro, Tech Mahindra, Tata Consultancy Services, Reliance Industries, Tata Steel, and Trent, while gainers included Eternal, ICICI Bank, Bajaj Finance, and Bharat Electronics [4] Geopolitical Factors - US President Donald Trump supported a sanctions bill that could impose 500 per cent tariffs on countries purchasing Russian oil, aiming to leverage pressure on nations like China and India to cease buying cheap oil from Moscow [6] - US Senator Lindsey Graham indicated that the legislation would provide the White House with "tremendous leverage" against countries such as China, India, and Brazil [6] Global Market Context - In Asian markets, South Korea's Kospi index increased, while Japan's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng indices declined [8] - Brent crude, the global oil benchmark, rose by 0.75 per cent to $60.42 per barrel [8]

Trade Relations Overview - President Trump's new tariff rates are set to take effect, impacting countries that have not finalized trade deals, with import duties ranging from 10% to 40% [2] - Temporary truces have been established with Mexico and China to allow for ongoing negotiations [2] India - Trump announced a substantial increase in tariffs on Indian goods due to India's purchase and resale of sanctioned Russian oil, which he claims supports Russia's wartime economy [5][6] - India's trade practices and high tariffs have been significant obstacles in negotiations, with Trump expressing dissatisfaction over India's previous commitments to reduce tariffs [7] - In 2024, India had a trade deficit of nearly $46 billion with the U.S., with total trade valued at approximately $130 billion, including U.S. exports worth $41 billion and imports worth $87 billion [8] Canada - Tariffs on Canadian goods have been raised from 25% to 35%, following earlier tariffs imposed on steel and automobiles [11] - Canada retaliated with $43 billion in tariffs against U.S. goods, complicating trade relations [11] - Key trade categories between the U.S. and Canada include energy, motor vehicles, aerospace products, and agricultural goods valued at $30 billion [12] Brazil - Brazil faces a 50% tariff on imports, with certain categories like aircraft and aluminum exempted, amid tensions with President Lula da Silva [16] - The tariffs are perceived as retaliatory measures linked to the prosecution of former President Jair Bolsonaro, which Trump has criticized [16] - Lula has condemned the tariffs as "economic blackmail," and trade negotiations between the U.S. and Brazil are currently stalled [16]