On Thursday, August 28, Indian equity benchmarks, Sensex and Nifty 50, are expected to open lower as the additional US tariffs of 25% on Indian exports have come into effect, taking the cumulative tariff imposed by the US on India to 50%.
The street fears that Indian goods will be now out of the US market, benefiting competitors like Vietnam, Bangladesh, and China, and putting jobs in key Indian labor-intensive industries at risk.
As of 7:16 AM, the GIFT Nifty was trading near 24,656, down 39 points from Tuesday’s close.
Asian markets traded mostly lower, while the US stock market ended higher overnight, with the S&P 500 touching an intraday record high.
The Foreign Institutional Investors (FIIs) were net sellers on Tuesday, while DIIs witnessed buying for the 2nd consecutive trading session.
On Tuesday, August 26, Foreign Institutional Investors (FIIs) were net sellers. FIIs sold equities worth ₹6,516.49 crore.
Domestic Institutional Investors (DIIs) were buyers on Tuesday. They bought shares worth ₹7,060.37 crore on the same day.
On August 26, the Indian stock market saw a sharp sell-off, with benchmark indices, midcaps, and smallcaps all losing over 1%, leading to a decline of nearly ₹6 lakh crore in overall investor wealth during the day.
The Sensex fell 1.04% to close at 80,786.54, while the Nifty 50 dropped 1.02% to end at 24,712.05. The BSE Midcap index was down 1.34%, and the Smallcap index slipped 1.68%.
Indian markets were closed on Wednesday, August 27, on account of Ganesh Chaturthi.
The US stock market ended higher on Wednesday, with the S&P 500 touching an intraday record high.
US markets ended higher as the Dow gained 147.16 points or 0.32% to close at 45,565.23, while the S&P 500 rose 15.46 points or 0.24% to 6,481.40. The Nasdaq also advanced 45.87 points or 0.21%, settling at 21,590.14.
The United States has enforced higher tariffs on Indian exports starting August 27, following an executive order signed by President Donald Trump. The move comes as a reaction to India’s crude oil imports from Russia, with Washington imposing an additional 25% duty. This raises the overall tariff burden on Indian goods to 50%.
The US dollar fell on rising bets of a Federal Reserve interest rate reduction next month. The dollar index, which gauges the currency against six major peers, held steady at 98.13, following two days of declines.
Gold edges lower in early Asian trade as investors continue to weigh the impact of a legal battle between Trump and Fed governor Lisa Cook. Spot gold is 0.1% lower at $3,396.56/oz.
Crude oil prices moved lower, with Brent crude futures slipping 0.53% to $67.69 and West Texas Intermediate (WTI) futures easing 0.59% to $63.77, following gains of over 1% in the prior session.
Disclaimer: The article is for informational purposes only and not investment advice.
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