Nifty and Sensex Likely to Start Lower Amid Global Trade Concerns Over U.S. Tariff Plans

Pre-Market Update at 7:45 AM: On Wednesday, July 9, the Indian stock markets are expected to start on a weak note, tracking cautious global cues after U.S. President Donald Trump confirmed that the proposed “reciprocal tariffs” will begin from August 1, with no extensions.

At 7:17 AM, the GIFT Nifty was trading near 25,579, down by 25 points, indicating a lower opening for both the Nifty 50 and Sensex. Asian markets were mixed, reflecting investor concern over Trump’s stance. In the U.S., markets closed flat to lower — the Dow Jones fell by 0.37 per cent (165.60 points) to 44,240.76, the S&P 500 dipped 0.07 per cent, and the Nasdaq inched up 0.03 per cent.

President Trump proposed a 50 per cent tariff on imported copper and hinted at up to 200 per cent duties on pharmaceutical imports. Although the pharma tariff may take a year to implement, the immediate market reaction was sharp. Copper futures in New York surged as much as 17 per cent on Tuesday, reaching USD 5.5085 per pound, before easing. Meanwhile, London Metal Exchange (LME) copper prices declined 1.7 per cent to USD 9,627 per tonne. Indian metal and pharma stocks are likely to see selling pressure in today’s session.

Domestically, Q1FY26 earnings season is underway, and stock-specific movement is likely to dominate the trade. On July 8, Foreign Institutional Investors (FIIs) were net sellers of equities worth Rs 26.12 crore, while Domestic Institutional Investors (DIIs) were net buyers, investing Rs 1,366.82 crore.

On Tuesday, Indian markets ended positively — the Sensex rose by 270.01 points (0.32 per cent) to close at 83,712.51, while the Nifty 50 gained 61.20 points (0.24 per cent) to end at 25,522.50.

In other asset classes, gold prices remained flat around USD 3,300.23 per ounce, and the U.S. Dollar Index was steady at 97.582. Crude oil prices edged lower amid rising U.S. inventories — Brent was down 0.20 per cent at USD 70.01 per barrel, and WTI fell 0.25 per cent to USD 68.16.

For today, RBL Bank remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.