Mumbai: The BSE Sensex Monday cracked over 362.92 points in line with global sell-offs amid renewed fears that trade negotiations between the US and China are on the verge of collapse.
Similarly, the NSE Nifty dived 114 points to settle below the 11,600-level.
In a sign of derailment of trade talks between the two global economic powers the US and China, US President Donald Trump on Sunday threatened to hike tariffs on USD 200 billion worth of Chinese goods.
Reacting to the news, Chinese bourses sank led by Shanghai Composite Index that plunged 5.58 percent. European equites were also trading significantly lower in early trade.
After plunging 453 points intra-day, the BSE Sensex settled 362.92 points, or 0.93 percent, lower at 38,600.34.
The broader NSE Nifty closed 114 points, or 0.97 percent, down at 11,598.25.
In the Sensex pack, Yes Bank, Tata Motors, Bajaj Finance, Tata Steel, HDFC twins, IndusInd Bank, RIL, Asian Paints, Hero MotoCorp, Axis Bank, M&M, HUL, Bajaj Auto, NTPC, HCL Tech, Kotak Bank and Infosys fell up to 5.30 percent.
Bucking the negative market trend, ITC, TCS, Bharti Airtel and ONGC ended in the green.
According to traders, domestic market turned jittery after Trump's surprise move spooked global investors.
In a tweet on Sunday, Trump said he would raise import taxes on USD 200 billion in Chinese products to 25 percent from 10 percent on Friday.
Despite Trump's announcement, China's top trade envoy is preparing to travel to the US to resume talks on Wednesday.
Meanwhile, foreign institutional investors (FIIs) sold equity worth Rs 400.68 crore on Friday, while domestic institutional investors (DIIs) purchased shares to the tune of Rs 57.07 crore, provisional data available with stock exchanges showed.
The rupee depreciated 19 paise to 69.41 against the US dollar intra-day.
Global benchmark Brent crude was trading 0.92 percent lower at USD 70.20 per barrel.