Mumbai
Benchmark indices turned volatile in early trade on Tuesday on escalating global trade concerns after US President Donald Trump announced new tariffs on an additional USD 200 billion worth of imports from China.

The 30-share BSE index gained 159.93 points, or 0.42 per cent in opening trade, but soon turned choppy falling 37.10 points, or 0.10 per cent, to 37,548.41.
The gauge had lost 505.13 points in the previous session as rupee woes and trade war worries spooked investors despite the government announcing measures to stem a steep fall in the domestic currency.

Investors were cautious after Trump on Monday announced imposition of new tariffs on an additional USD 200 billion worth of imports from China, escalating the trade war with the Asian giant.

Alleging that China has been unwilling to change its unfair trade practices, Trump said the new additional tariff structure would be effective from September 24 from when it would be at 10 per cent until the year end, but would increase to 25 per cent level from January 1.

Shares of Bank of Baroda cracked nearly 10 per cent, while Vijaya Bank rose over 3 per cent, and Dena Bank rallied up to 20 per cent after the government on Monday said the three banks would be merged to create the country’s third largest lender as part of efforts to revive credit and economic growth.

Domestic institutional investors sold shares worth Rs 180.36 crore, while foreign portfolio investors also offloaded shares of Rs 106.54 crore on Monday, provisional data showed.