Mumbai (Maharashtra) [India]: Indian stock markets opened lower on Tuesday, impacted by U.S. President Donald Trump’s tariff threats, which triggered selling across most sectors.
At the opening bell, the benchmark indices saw a decline:
- Nifty 50 opened at 22,821.10 points, down 111.80 points (-0.49%).
- BSE Sensex started at 75,672.84, falling 266.34 points.
Trump’s Tariff Impact on Indian Markets
Market analysts believe Trump’s comments about imposing 25% tariffs on automobiles, semiconductors, and pharmaceuticals have created uncertainty, affecting Indian pharma stocks, which are heavily reliant on exports to the U.S..
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated:
“Trump’s declaration impacted India’s pharma stocks since India’s leading pharma companies are major exporters to the US. It appears that Trump’s intention is to negotiate and extract concessions before tariffs are imposed. It remains to be seen how this will pan out.”
Despite the global concerns, Vijayakumar highlighted a positive development, stating that the RBI’s forecast of economic recovery in H2 FY25 could support growth and earnings recovery in FY26.
“Beaten-down midcaps, like defence stocks, are witnessing some buying,” he added, indicating selective optimism in specific sectors.
Sectoral Performance
- Nifty Metal was the only gainer, rising 0.23%.
- Nifty Auto dropped 0.94%, and Nifty FMCG declined 0.81%, reflecting broad-based selling.
- Among Nifty 50 stocks, 35 stocks opened lower, 14 registered gains, and one remained unchanged.
Global Market Pressure
The negative sentiment was mirrored across Asian markets:
- Japan’s Nikkei 225 fell 1.6%.
- Hong Kong’s Hang Seng Index lost 1.7%.
- South Korea’s KOSPI declined 0.43%.
- Taiwan Weighted Index dropped 0.34%.
Market Outlook
With global trade tensions and geopolitical uncertainties affecting investor confidence, Indian markets are expected to remain volatile. Investors will be closely monitoring Trump’s trade policies, domestic economic indicators, and growth signals from the RBI for future market direction.