After closing the day of trade on the additional trading day on Saturday, February 1, on a flat note, the Indian equity markets suffered fresh losses in the intraday trade on Monday, February 3.

Indian Markets In Jeopardy

This comes a couple of days after the presentation of the Union Budget on Februrary 1. The budget was lauded by many, who saw it as a consumption-driven document looking to aid the regular middle class, by increasing their purchasing power.

However, this budget appears to have not been able to stop or save markets from being hit by the wave of pessimism. This wave of pessimism is originating from US President Donald Trump's tariff war.

The US Administration has decided to impose a flat tariff of 25 per cent on Canada and Mexico. In addition, it has also announced the imposition of tariffs on China, it geopolitical arch-rival.

These developments have left emerging markets like India vulnerable.

As a result of this uncertainty, induced by Donald Trump, the Indian markets appear to have reacted in shock. The BSE Sensex, the oldest of all Asian indices, dropped by over 600 points in the early hours of the day's trade.

The developments emerging from the National Stock Exchange were no different, as the NSE Nifty also slumped by over 200 points.

Sensex

While the shares continue to trade in red, the overall decline in value appears to have reduced a little.

At the time of writing, the decline in the value of Sensex stood at 507.703 points or 0.66 per cent. This has taken the overall value of the index to 76,998.23.

Nifty

Then, when we look at the Nifty index, the value of the index, the value of this index dropped in value by a greater margin than the Sensex.

The Nifty index dipped by 0.76 per cent or 178.75 points. This has taken the overall of the index to 23,303.40 points.

The value of the Nifty Bank index also dropped in value. The banking index dropped to 49,187.30, after declining by 319.65 points or 0.65 per cent.