Indian Benchmark Indices Open Flat as US-India Trade Tensions Resurface Over Russian Oil

Market Update at 10:30 AM: India’s stock market indices opened flat on Tuesday as investors reacted to renewed trade tensions with the U.S. After U.S. President Donald Trump once again warned of imposing steep tariffs on Indian goods due to its continued imports of Russian oil, market sentiment turned cautious.

As of 9:15 a.m. IST, the Nifty 50 edged down slightly by 0.01 per cent to 24,720.25, while the BSE Sensex dipped 0.09 per cent to 80,946.43. In response, India’s government labelled Trump’s comments as “unjustified” and affirmed its commitment to safeguarding its economic interests.

According to market experts, this escalating trade conflict is dampening investor confidence, and the benchmarks may remain rangebound until more clarity emerges on the tariff issue. Among sectoral indices, 9 out of 16 were trading in the green, while broader indices like the Smallcap and Midcap hovered near unchanged levels.

Pre-Market Update at 7:45 AM: Indian equity markets are set for a turbulent start on Tuesday, August 5, as GIFT Nifty signals a volatile opening. As of 7:17 AM, GIFT Nifty was trading at 24,756, up 27 points from the previous close. The sentiment remains mixed due to global macro triggers and political developments.

US President Donald Trump’s fresh remarks on India added uncertainty to the markets. Trump has threatened to “substantially” increase tariffs on Indian exports, blaming India for importing discounted Russian oil and allegedly re-exporting it. While no specific figures were shared, the statement comes amid an already cautious environment driven by global trade tensions.

Despite this, global market cues were broadly positive. Asian equities opened higher, tracking gains on Wall Street, where all three major indices logged their best single-day performance since May 27. The Dow Jones Industrial Average rose by 585.06 points (1.34 per cent) to close at 44,173.64. The S&P 500 climbed 91.93 points (1.47 per cent) to 6,329.94, while the Nasdaq Composite jumped 403.45 points (1.95 per cent) to 21,053.58, as investors bet on a possible US interest rate cut in September.

Back home, the Nifty 50 closed Monday’s session at 24,722.75, up by 0.64 per cent, and the BSE Sensex gained 0.52 per cent to 81,018.72. Gains in metal and IT sectors led the rebound after a two-day decline of nearly 1.1 per cent, triggered by the US tariff news.

Domestic cues remain strong as the Reserve Bank of India (RBI) Monetary Policy Committee meeting (August 4–6) continues. Market participants are also eyeing key macroeconomic data such as the US Services and Manufacturing PMI, due later today.

Quarterly Results continue to drive stock-specific action. Major companies announcing their Q1 FY26 earnings today include Bharti Airtel, Adani Ports, Britannia Industries, Bharti Hexacom, Lupin, Berger Paints India, Torrent Power, Gland Pharma, Prestige Estates, Gujarat Gas, and others. These results could impact Large-Cap and Mid-Cap stock movements.

On the institutional front, Foreign Institutional Investors (FIIs) remained net sellers on Monday, offloading equities worth Rs 2,566.51 crore. Meanwhile, Domestic Institutional Investors (DIIs) continued their strong buying streak, purchasing stocks worth Rs 4,386.29 crore.

Other notable global developments include Japan's services sector growing at its fastest pace in five months, with the S&P Global Services PMI climbing to 53.6 in July. Gold prices rose for the fourth straight session to USD 3,380.61 per ounce, aided by a weaker US dollar. Crude oil prices remained flat, with Brent at USD 68.75 and WTI at USD 66.26 per barrel, amid supply concerns.

For today, PNB Housing remain on the F&O ban list.

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