Stock Market Opens Lower As Tariff Concerns Weigh On Sentiment; Sensex Sheds 619 Points

Indian equities opened sharply lower on Thursday, dragged down by broad-based selling amid rising global trade tensions. The benchmark BSE Sensex slumped 618.74 points, or 0.76 per cent, to 80,863.12, while the NSE Nifty dropped 161.15 points, or 0.65 per cent, to 24,693.90. Investor sentiment took a hit following the announcement of fresh US tariffs on Indian exports, triggering concerns over potential trade disruptions and their impact on key sectors. Around 35 stocks advanced, 129 declined, and 13 remained unchanged.

Major losers on the Nifty included Tata Motors, Dr. Reddy’s Laboratories, Reliance Industries, Bharti Airtel, and Titan Company. Top gainers were Jio Financial, SBI Life Insurance, and Tata Steel.

Expert Comment

VK Vijayakumar, Chief Investment Strategist, Geojit Investments, noted, "The 25 per cent tariff on India plus an unspecified penalty for energy and defence-related purchases from Russia is very bad news for Indian exports and thereby on the growth prospects of the Indian economy in the short run. Since trade negotiations with India are continuing, perhaps, the 25 per cent tariff may come down eventually. But certainly, there is a short-term hit to Indian exports and GDP growth. This short-term hit will reflect in the stock market, too, in the short-term."

"From the investor perspective it is important to understand that the 25 per cent tariff will come down after the negotiations which start in mid-August. The 25 per cent tariff imposed on India is far higher than the rates reached in trade deals with other countries. This is the typical Trumpian strategy to get better deals from India in other areas and finally settle at a tariff rate around 20 per cent or less. Nifty is unlikely to go below the support level of 24500. Investors can buy the dip focusing on domestic consumption themes, particularly segments like leading private sector banking names, telecom, capital goods, cement, hotels and select autos which have done well in Q1," he added.

US Tariff On India

Former US President Donald Trump announced on Wednesday through Truth Social that a 25 per cent tariff on Indian goods will be implemented starting August 1. While he acknowledged the friendly relationship between the two countries, he criticised the low trade volume, blaming it on India’s high tariff rates and restrictive trade policies.

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