Indian shares fell over 1 percent on Friday, with the broader NSE index closing below the 10,000 level for the first time since October, after heated rhetoric between the United States and China over import tariffs sparked fears of a global trade war.
The NSE Nifty closed 1.15 percent lower at 9,998.05, while the benchmark BSE Sensex ended down 1.24 percent at 32,596.54.
The Nifty posted its lowest close since Oct. 11, closing 1.9 percent lower for the week. The Sensex posted its lowest close since Oct. 23, declining 1.8 percent this week.
Banking stocks were the biggest losers, with HDFC Bank Ltd shedding 1.4 percent and ICICI Bank Ltd ending 2.7 percent lower.
U.S. President Donald Trump signed a presidential memorandum that could impose tariffs on up to $60 billion of Chinese goods including steel, although the measures have a 30-day consultation period. In retaliation, China unveiled plans to impose tariffs on up to $3 billion of U.S. imports.
“Markets are reacting in line with global markets. The biggest fear right now is how this trade war will pan out and how it will impact global trade and economy,” said Siddhartha Khemka, head of retail research at Motilal Oswal Securities.
“There is also a chance that U.S. may put more tariffs on certain other countries or products where they don’t see reciprocal benefits being given.”