Sensex tanks 425 points, Nifty below 11,000

Mumbai (IANS) Both Sensex and Nifty ended over 1 percent lower on Friday following a steep decline in auto stocks led by Tata Motors and broadly negative global cues.

Heavy selling was witnessed in the auto stocks which fell over 3.37 percent lower, and the banking and finance counter ended lower.

Globally, investors reacted negatively after US President Donald Trump said he would not meet his Chinese counterpart Xi Jinping ahead of a trade deal deadline on March 2, when American tariffs on Chinese products are slated to increase.

"Indian markets traded negative over concerns of economic growth and trade disputes which riled global markets. Post the rate cut by the RBI on Thursday profit booking was seen in rate-sensitives like auto," said Essel Mutual Fund CIO Viral Berawala. 

The BSE Sensex closed 424.61 points or 1.15 per cent lower at 36,546.48 from its previous close of 36,971.09, while the Nifty closed 125.80 points down at 10,943.60.

According to Vinod Nair, Head of Research, Geojit Financial Services, the markets slid on renewed worries over global trade and profit booking in the domestic market after a healthy performance last one week after the interim budget and RBI policy.

In contrast, Tata Motors closed 17.28 percent lower, while the Tata Motors(DVR) declined over 13 percent after the company reported a massive loss in its third quarter results declared on Thursday.

Among the other laggards were Vedanta losing over 5 percent. Tata Steel fell over 3 percent and ONGC closed 2.94 percent.

However, Kotak Mahindra Bank, Bharti Airtel, HCL Tech, HDFC Bank and Bajaj Finance gained up to 1 percent.