Mumbai

Equity benchmark index Sensex on Tuesday plunged over 1,000 points to sink below the 83,000 level due to widespread selloff tracking sluggish global markets amid escalating geopolitical tensions.

Besides, continued weakness in the rupee and persistent foreign fund outflows dented investors' sentiment, traders said.

Extending its previous day's decline, the 30-share BSE Sensex tumbled 1,065.71 points, or 1.28 per cent, to settle at 82,180.47. During the day, it dropped 1,235.6 points, or 1.48 per cent, to 82,010.58.

A total of 3,503 stocks declined while 780 advanced and 119 remained unchanged on the BSE.

The 50-share NSE Nifty tanked 353 points, or 1.38 per cent, to end at 25,232.50.

"Markets extended their weakness on Tuesday and ended lower amid broad-based selling and weak global cues. Market sentiment remained subdued due to mixed corporate earnings and renewed concerns surrounding geopolitical tensions and global trade developments.

"Persistent foreign institutional selling, along with a weaker currency environment, further weighed on investor confidence and kept risk appetite restrained throughout the session," Ajit Mishra, SVP, Research, Religare Broking Ltd, said.

From the 30-Sensex firms, Eternal declined by 4.02 per cent, followed by Bajaj Finance (3.88 per cent), Sun Pharma, InterGlobe Aviation, Trent, Asian Paints, Mahindra & Mahindra and Bajaj Finserv.

HDFC Bank emerged as the only gainer from the pack.

The BSE smallcap gauge tumbled 2.74 per cent, and the midcap index dropped 2.52 per cent.

Realty dived 5.21 per cent, services tanked 2.89 per cent, capital goods (2.76 per cent), consumer discretionary (2.73 per cent), consumer durables (2.71 per cent), telecommunication (2.42 per cent), auto (2.36 per cent) and power (2.23 per cent).

"Investor sentiment was weighed down by escalating global trade tensions and continued foreign capital outflows. Concerns resurfaced after US President Donald Trump threatened fresh tariffs on several European nations, reviving fears of renewed global trade disruptions.

"At the same time, sustained selling by foreign portfolio investors added to the downside pressure in domestic equities. Heightened global uncertainty and falling equity markets prompted investors to shift towards safe-haven assets, with gold and silver trading at record highs," according to Ashika Institutional Equities.

In Asian markets, South Korea's Kospi index, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index settled lower.

Markets in Europe were trading over 1 per cent lower.

US markets were closed on Monday for a holiday.

"The aggressive and often unpredictable use of tariffs by the US administration as a foreign policy tool is creating widespread unease among global market participants, triggering sharp volatility across financial markets. This has weighed heavily on risk assets while pushing safe-haven gold and silver prices higher.

"Fresh threats by US President Donald Trump to impose additional tariffs on European nations opposing the US move to take control of Greenland have triggered another bout of global equity selling, with Indian markets also witnessing broad-based pressure," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

The Indian equity market ended today’s session on a decisively negative note, reflecting a combination of weak global cues, cautious investor positioning, and subdued risk appetite, he added.

Foreign institutional investors offloaded equities worth Rs 3,262.82 crore on Monday, while Domestic Institutional Investors (DIIs) remained buyers as they bought stocks worth Rs 4,234.30 crore, according to exchange data.

ALSO READ: India, UAE signs deals to deepen partnership during MBZ's short Delhi visit

Brent crude, the global oil benchmark, went up by 0.09 per cent to USD 63.91 per barrel.

On Monday, the Sensex declined 324.17 points or 0.39 per cent to settle at 83,246.18. The Nifty dropped 108.85 points or 0.42 per cent to 25,585.50.