Nifty-Sensex open flat amid Trump’s tariff threat on Russian oil imports
Mumbai (Maharashtra): Indian stock markets opened on a cautious note on Tuesday as investors remained wary of fresh tariff threats from US President Donald Trump. The Nifty 50 index opened almost steady but in the red at 24,720.25, before closing lower by 2.50 points or 0.01 per cent, while the BSE Sensex also opened at 80,946.43, down 72.29 points or 0.09 per cent.
Market experts say the uncertainty created by Trump’s recent remarks is worrying investors. “Trump’s anger has overshadowed the green in global markets. In line with the recovery in global markets from Asia to Europe and the US, Indian markets recovered from oversold levels on Monday,” said banking and market expert Ajay Bagga.
A fresh social media post by Trump threatening to impose additional tariffs on India for buying crude oil from Russia has become a cause of concern. He further added, “The deadline given by Trump to Putin to declare a ceasefire expires on Friday, so these additional tariffs could be announced on Friday itself.” Bagga further added, “The impact of Trump’s tariffs on Indian markets has largely subsided. Any increase in the already high 25 per cent tariff on India will impact trade between the two countries. We expect the impact on the market to be limited given MSCI India’s 2 per cent revenue dependence on US goods exports.”
In the broader NSE market, the Nifty 100 fell 0.14 per cent, while the Nifty Smallcap 100 rose 0.20 per cent. The Nifty Midcap index was trading steady. Among sectoral indices, the Nifty Auto fell 0.40 per cent, Nifty FMCG 0.14 per cent, Nifty IT 0.42 per cent and Nifty Realty 0.15 per cent. However, Nifty Media, Metal, Pharma and PSU Bank opened with marginal gains.
Sectors linked to US export markets such as gems, jewellery, leather goods, textiles, auto accessories, auto and chemicals may see some impact. The focus is expected to be on domestic-focused sectors. In other Asian markets, all major indices were trading in the green at the time of writing this report, except Hong Kong’s Hang Seng index, which was marginally down. Japan’s Nikkei 225 index rose 0.75 per cent, Singapore’s Straits Times 0.43 per cent, Taiwan’s Weighted Index 0.87 per cent and South Korea’s Kospi 1.24 per cent.
