Indian markets open lower as US plans 50% tariffs on Indian goods

Mumbai: Indian benchmark indices opened in the red on Tuesday after a draft notice from the US Department of Homeland Security indicated that President Donald Trump plans to impose 50 per cent tariffs on Indian goods starting Wednesday.

The Nifty 50 fell 167.90 points, or 0.67 per cent, to 24,799, while the Sensex dropped 546 points, or 0.67 per cent, to 81,089.

Trump had previously announced that tariffs on Indian goods would rise from 25 per cent to 50 per cent, citing India’s purchases of Russian crude oil.

Among sectoral indices, the Nifty Metal Index slipped 1.04 per cent, the Nifty Pharma Index fell 1.57 per cent, the Nifty PSU Bank Index dropped 0.84 per cent, and the Nifty Private Bank Index declined 0.96 per cent.

Top gainers on the Nifty included Bajaj Auto, Hero Motocorp, HUL, and Infosys, while Tata Steel, Dr Reddy’s Laboratories, ICICI Bank, and Tata Motors were among the top losers.

“Inability to close above the 25,000/25,033 zone yesterday suggests that buyers are not keen on chasing prices higher. This leaves room for dips. The possibility of an upswing could diminish if Nifty slips below 24,870, but it would require a direct fall below 24,740 to Initiate downside plays,” said Anand James, Chief Market Strategist at Geojit Investments Limited.

“Since the principal reason for the market's resilience is liquidity and liquidity flows are likely to be sustained, the market is unilkely to correct significantly, and the elevated valuations may continue. Investors may avoid unjustifiably expensive small caps and focus on large caps which are reasonably fatriy valued,” added Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.

US markets were largely in the red, with the Dow Jones Industrial Average down 0.77 per cent, the Nasdaq falling 0.22 per cent, and the S&P 500 declining 0.43 per cent.

Asian markets also showed mixed trends. China’s Shanghai Index rose 0.07 per cent, while Japan’s Nikkei slipped 1.06 per cent. Hong Kong’s Hang Seng Index fell 0.13 per cent, and South Korea’s Kospi declined 1 per cent.

On Monday, foreign institutional investors (FIIs) were net sellers for the second consecutive day, offloading equities worth ₹2,466 crore, while domestic institutional investors (DIIs) bought equities worth ₹3,176 crore.

IANS