Indian equities tumbled in early trade as renewed tariff threats from US President Donald Trump dampened investor sentiments. Sensex tanked over 700 points to 80,688 points this morning, marking a steep fall during the earnings season. Nifty fell more than 200 points to 24,538 points.

The market sentiments also remained low due to foreign fund outflows. Exchange data shows that Foreign Institutional Investors (FII) sold shares worth nearly Rs 6,450 crore on Friday.

Among the major laggards in the 30-share Sensex pack were HDFC Bank, HCL Tech, Infosys, Tech Mahindra, and Tata Steel. The gainers included Hindustan Unilever, Adani Ports, and Mahindra & Mahindra.

Experts are focused on how global headwinds like trade turbulence are being countered by local tailwinds that are gaining momentum with stronger quarterly data.

“There are global headwinds like renewed tariff concerns that will restrain a breakout rally. At the same time, there are domestic tailwinds that will support the market at lower levels,” said VK Vijayakumar of Geojit Investments Limited.

The Indian markets followed a slump in their Asian peers that trade lower on account of steel tariff fears. Major indexes in South Korea, Japan, Shanghai, and Hong Kong did not show any surge, while the US markets ended on a mixed note.

Trump said last week that he plans to double the tariffs on steel and aluminium exports to 50% from 25%. His remark followed an accusation that China has violated their deal to mutually withdraw tariffs and trade restrictions.

“We are going to be imposing a 25% increase. We’re going to bring it from 25% to 50% – the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States,” Trump had said in Pennsylvania.

Such negative cues from global markets could impact gains, said markets research expert Vikas Jain, pointing to the selling in the US and Asian markets and the renewed tensions between Ukraine and Russia.