On Tuesday, August 5, Gift Nifty is indicating a turbulent start for the benchmark Nifty. Blame it on Trump threatening to "substantially" raise tariffs on India over Russian oil. India is really getting the rough end of Trump’s trade war!
India has released an official statement stating it has been targeted by the United States and the European Union for importing oil from Russia after the commencement of the Ukraine conflict. In fact, India began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict. The United States at that time actively encouraged such imports by India for strengthening global energy markets stability
As of 7:17 AM, the GIFT Nifty was trading near the 24,756 mark, down 27 points from its previous close.
Meanwhile, cues from the global market were positive as Asian peers traded in green, and the US stock market rallied overnight.
The Nifty ended Monday’s session above the 24,700 mark, recovering with support from ongoing Q1FY26 corporate results and in anticipation of the upcoming RBI Monetary Policy Committee (MPC) meeting scheduled for August 4–6.
Market participants are now focused on key global macroeconomic indicators, including the US Services and Manufacturing PMI set to be released today. Additionally, upcoming earnings reports from key companies are expected to influence stock-specific movements ahead of the RBI’s policy announcement.
Bharti Airtel, Adani Ports and Special Economic Zone, Britannia Industries, Bharti Hexacom, Lupin, Prestige Estates Projects, Berger Paints India, Torrent Power, Container Corporation of India, Gujarat Fluorochemicals Limited, Exide Industries, Gland Pharma and Gujarat Gas will announce their Q1 earnings today.
On Monday, August 4, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth ₹2,566.51 crore, marking a streak of ten consecutive trading sessions of selling. In contrast, Domestic Institutional Investors (DIIs) purchased shares worth ₹4,386.29 crore during the same session, extending their buying streak to 20 consecutive trading sessions.
India’s stock markets ended higher on Monday, with strong buying seen in the metal and IT sectors. The gains came as investors focused more on the possibility of a U.S. interest rate cut, easing worries about the recently announced 25% U.S. tariffs on Indian exports.
The Nifty 50 climbed 0.64% to close at 24,722.75, while the BSE Sensex advanced 0.52% to settle at 81,018.72. This rebound followed a two-day decline of nearly 1.1%, which had been triggered by the tariff news from U.S. President Donald Trump.
On Monday, U.S. stock markets witnessed a sharp rebound, with all three major indices posting their strongest single-day gains since May 27. The rally came as investors capitalised on lower prices following the previous session's decline and increased their expectations of a potential interest rate cut in September, driven by Friday’s softer-than-expected jobs report.
The Dow Jones Industrial Average jumped 585.06 points, or 1.34%, to settle at 44,173.64. The S&P 500 advanced 91.93 points, or 1.47%, to end at 6,329.94, while the Nasdaq Composite surged 403.45 points, or 1.95%, finishing at 21,053.58.
US President Donald Trump has indicated plans to significantly increase tariffs on Indian exports, citing concerns over India's ongoing imports of discounted Russian oil. He alleged that India has been benefiting by re-exporting this low-cost Russian oil to global markets. However, Trump did not provide details on the potential new tariff rates.
Japan's services industry experienced its fastest growth in five months during July. According to the final S&P Global Services PMI, the index rose to 53.6, up from 51.7 in June. This marks the most substantial expansion in the sector since February.
Gold prices extended their upward momentum for the fourth straight session, buoyed by a softer US dollar and easing Treasury yields. Spot gold edged up by 0.2%, reaching $3,380.61 per ounce.
Crude oil prices remained largely flat after three consecutive days of losses, driven by growing concerns about excess supply. Brent crude inched down 0.01% to $68.75 per barrel, and US West Texas Intermediate (WTI) dipped 0.05% to $66.26. Both benchmarks had dropped over 1% in the previous session, marking their lowest levels in a week.
Disclaimer: The article is for informational purposes only and not an investment advice.
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