On Tuesday, July 8, the Nifty 50 and Sensex are likely to open on a cautious note, following tariff volatility is back on the front pages and the negative takeaway is that there is no end in sight for tariff uncertainties.
As of 7:15 AM, the GIFT Nifty was trading near the 25,506 mark, down 10 points from its previous close, indicating that the Indian market is likely to open on a cautious note.
The good news this Tuesday morning is that Japan’s Nikkei 225 is trading in positive territory, despite U.S. President Donald Trump’s announcement of a 25% tariff on Japanese imports starting August 1. Most Asian markets are showing positive momentum, in sharp contrast to the U.S. markets, which closed with losses overnight following the tariff announcement targeting both Japan and South Korea.
This week, two more key events are set to grab attention:
On Monday, July 7, Foreign Institutional Investors (FIIs) were net buyers, having bought equities worth ₹1,853.39 crore. Domestic Institutional Investors (DIIs), on the other hand, bought shares totalling ₹321.16 crore during the same session.
Indian stock markets ended Monday’s session nearly unchanged, as strength in consumer-focused shares helped counter losses in other sectors. Investors remained wary due to rising concerns over U.S. trade policy developments.
The Nifty 50 settled almost flat at 25,461.3, while the BSE Sensex inched up by 0.01% to close at 83,442.5. On the broader front, the mid-cap and small-cap indices saw modest declines, slipping 0.3% and 0.4%, respectively.
On Tuesday, Asian markets moved slightly upward as U.S. President Donald Trump indicated a willingness to continue trade talks, despite recently raising tariff rates on countries such as Japan and South Korea.
U.S. markets closed significantly lower on Monday following U.S. President Trump's announcement of steep tariffs targeting major trade partners. The Dow Jones Industrial Average slipped by 422.17 points, a drop of 0.94%, settling at 44,406.36. The S&P 500 also moved down, losing 49.37 points or 0.79%, to finish at 6,229.98. Meanwhile, the Nasdaq Composite declined by 188.59 points, or 0.91%, ending the session at 20,412.52.
U.S. President Donald Trump has declared the imposition of new tariffs of 25% on imports from Japan and South Korea. These tariffs will come into effect on August 1. According to the White House, the U.S. President will be signing an order to postpone the earlier planned implementation date from July 9 to August 1.
Gold prices remained largely unchanged on Tuesday after U.S. President Donald Trump imposed steep 25% tariffs on imports from Japan, South Korea, and other nations. However, the upward movement in U.S. Treasury yields limited any significant gains for the precious metal. Spot gold is 0.1% lower at $3,336.39/oz.
Crude oil prices saw a slight pullback on Tuesday following nearly 2% gains in the previous session. The moderation came as markets evaluated the impact of fresh U.S. tariff announcements and an unexpectedly high production increase from OPEC+ scheduled for August. Brent crude futures declined 0.30% to $69.37 a barrel, while the US West Texas Intermediate crude fell 0.35% to $67.69 a barrel.
The Indian rupee depreciated by 54 paise on Monday, closing at 85.94 against the U.S. dollar. The drop came amid rising international crude oil prices and sustained strength in the dollar.
Disclaimer: The article is for informational purposes only and not investment advice.
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