World
India
Indian stock markets are set for a weak opening on Thursday after U.S. President Donald Trump announced a significant increase in tariffs on imports from India. As part of his broader trade policy, Trump imposed a 26% reciprocal tariff on goods coming from the South Asian nation, triggering concerns among investors.
The GIFT Nifty futures were trading at 23,069.5 as of 6:46 a.m. IST, suggesting that the benchmark Nifty 50 index would open lower than Wednesday’s closing level of 23,332.35. The sudden tariff move has added fresh uncertainty to the global financial landscape, particularly affecting trade-dependent economies like India.
Trump’s Tariff Strategy Hits Global Markets
The latest tariff decision is part of Trump’s broader plan to introduce a 10% baseline tariff on all U.S. trade partners. Additionally, he has announced even steeper duties on several other countries, with China being the hardest hit at 34%.
This aggressive trade policy has rattled global markets, leading to a sharp downturn in several major Asian indices. Investors, worried about the potential disruption of trade and supply chains, have started shifting their money into traditionally safer assets like bonds, gold, and the Japanese yen.
Market Experts Expect a Decline in Indian Equities
Stock market analysts and investors in India are bracing for an immediate negative reaction. Saurabh Jain, Assistant Vice President of research in retail equities at SMC Global, commented on the situation, saying, “The U.S. tariffs are on the higher side and clearly could trigger an immediate fall in Indian markets on Thursday.”
Indian companies that rely on exports to the U.S. may experience pressure as these tariffs increase the cost of doing business, potentially impacting corporate earnings and investor sentiment.
Rupee Under Pressure After Tariff Announcement
The Indian rupee also felt the impact of Trump’s decision. In the non-deliverable forward market, the rupee weakened on Thursday morning following the announcement. A weaker currency could further add to concerns about inflation and the cost of imports, particularly crude oil, which India heavily depends on.
Concerns Over Trade and Economic Growth
The escalation of tariffs between India and the U.S. could have long-term implications for trade relations between the two nations. India is a major exporter of pharmaceuticals, textiles, and information technology services to the U.S., and higher tariffs could make these goods and services more expensive for American consumers.
While India has previously taken steps to strengthen its domestic manufacturing and reduce dependency on foreign trade, the sudden imposition of tariffs still poses a significant challenge. Experts warn that prolonged trade tensions could slow down economic growth and impact foreign investment in the country.
Investor Sentiment and Future Outlook
With global markets already grappling with uncertainties related to interest rates and inflation, Trump’s tariff move adds another layer of volatility. Investors will be closely watching for any government response from India, as well as potential diplomatic negotiations to ease trade tensions.
As markets open on Thursday, all eyes will be on how Indian equities react to the news and whether the government takes measures to mitigate the impact of the tariffs. Meanwhile, investors are likely to adopt a cautious approach, waiting for further developments in the evolving trade dynamics between India and the U.S.
ALSO READ: Pope Francis Showing ‘Surprising Improvement’ After Surviving Life-Threatening Health Crisis
