Nifty, Sensex May Open Lower as Trump Imposes 50% Tariff on Indian Goods
DSIJ Intelligence-2Categories: Mkt Commentary, Trending
As of 7:25 AM, the GIFT Nifty was trading at 24,598, down by 32 points from its previous close, indicating a weak start for domestic markets.
Pre-Market Update at 7:45 AM: Benchmark indices Nifty and Sensex are likely to open in the red on Thursday, August 7, following the imposition of a steep 50 per cent total tariff on Indian imports by former U.S. President Donald Trump. The additional 25 per cent tariff was announced in response to India’s continued purchases of Russian crude oil. The revised tariff policy will be effective from August 27, 2025, following a 21-day grace period. The move is expected to negatively impact India’s export competitiveness and reduce room for diplomatic negotiations.
As of 7:25 AM, the GIFT Nifty was trading at 24,598, down by 32 points from its previous close, indicating a weak start for domestic markets. Meanwhile, Asian markets were trading mixed, while Wall Street closed higher on Wednesday, with the Nasdaq leading gains, up by 1.21 per cent. The Dow Jones gained 0.18 per cent and the S&P 500 rose 0.73 per cent.
On the domestic front, Indian equities ended lower on Wednesday, August 6, after the Reserve Bank of India’s Monetary Policy Committee (MPC) kept the repo rate unchanged and retained a ‘Neutral’ stance. The Sensex declined by 166.26 points to close at 80,543.99, while the Nifty slipped 75.35 points to end at 24,574.20. Sentiment was further impacted by renewed concerns over U.S. trade policy.
Institutional flows reflected a continued divergence in sentiment. Foreign Institutional Investors (FIIs) remained net sellers for the 12th straight session, offloading equities worth Rs 4,999.10 crore. In contrast, Domestic Institutional Investors (DIIs) were net buyers, purchasing shares worth Rs 6,794.28 crore, continuing their 22-day buying streak.
Investors will focus on Q1 FY26 earnings results from key companies today, including Life Insurance Corporation of India, Titan Company, Solar Industries India, Godrej Consumer Products, Cummins India, BSE Limited, Hindustan Petroleum Corporation, General Insurance Corporation of India, Kalyan Jewellers India, Linde India, Page Industries, Max Financial Services, and Biocon. Stock-specific movements are expected based on Quarterly Results, particularly in Large-Cap and Mid-Cap counters.
In commodities, gold remained stable in early Asian trading at USD 3,368.47/oz, up 0.1 per cent, as markets weigh Trump’s tariff decision and possible U.S.-Russia dialogue. Trump stated there was a "good chance" of meeting President Putin soon, potentially easing geopolitical concerns.
Crude oil prices recovered slightly after a five-day losing streak. Brent crude futures rose above USD 67 per barrel and WTI crude approached USD 65 per barrel. The rebound was driven by concerns over global supply disruptions stemming from geopolitical tensions.
For today, PNB Housing remain on the F&O ban list.
Disclaimer: The article is for informational purposes only and not investment advice.