Indian Stock Market Opens in Red Amid US Tariff Concerns; Analysts Advise Caution
Stock market opens weak: Nifty at 24,727, Sensex falls 138 points. Trump’s 25% tariff on India sparks volatility. Check expert insights.
Stock Market Today: Nifty50 Slips Below 24,750; Sensex Down as Trump’s Tariffs Hit Sentiment
Indian stock markets opened on a weak note Friday, with benchmark indices falling as investor sentiment turned cautious over US President Donald Trump’s decision to impose a 25% tariff on Indian exports starting August 7.
📉 Market Opening Snapshot
♦ Nifty50: 24,727.45, down 41 points or 0.17%
♦ BSE Sensex: 81,047.39, down 138 points or 0.17%
The decline follows a volatile July in which the Nifty dropped 3.1%.
🌍 Global Trade Tensions
Trump’s executive order announced tariffs on 69 countries, including India and the EU. The tariffs, effective August 7, have raised concerns of a potential slowdown in global trade. Analysts say negotiations over the next few days could influence final rates.
📊 Expert Views
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that while markets see the 25% tariff as a short-term headwind, volatility is expected.
“The market views the 25% tariff as a short-term issue. Negotiations beginning this month may bring rates down,” he said.
He cautioned about ongoing weakness in smallcap stocks due to high valuations and sustained foreign institutional investor (FII) selling.
💸 Investor Activity
♦ FIIs: Net sellers of ₹5,588 crore on Thursday
♦ DIIs: Net buyers of ₹6,373 crore on the same day
The rise in the US dollar index to 100 is expected to continue pressuring FIIs, potentially impacting largecaps.
🌐 Global Market Cues
♦ US Markets: Fell on Thursday despite initial gains, as investors weighed corporate earnings and awaited results from Amazon and Apple.
♦ Asian Markets: Extended their losing streak to six consecutive sessions in 2025, the longest this year, amid tariff concerns.
♦ Oil Prices: Steady after a 1% fall Thursday, as traders assessed potential demand impacts from US tariffs.
⚡ Market Outlook
Analysts advise a hedged strategy and wait-and-watch approach, citing global uncertainties and ongoing FII outflows as key risk factors.
