Indian benchmark indices opened lower on Thursday after US President Donald Trump announced a steep 25 per cent tariff on imports from India, triggering concerns among investors.
At 9:27 a.m., the Sensex was down 487 points or 0.60 per cent at 80,994, while the Nifty declined 140 points or 0.57 per cent to trade at 24,717.
Broader markets also witnessed selling pressure. The Nifty Midcap 100 index fell by 457 points or 0.79 per cent to 57,484, and the Nifty Smallcap 100 index was down 100 points or 0.55 per cent at 18,037.
“From an investor’s perspective, it is important to understand that the 25 per cent tariff is likely to come down after negotiations, which are expected to begin in mid-August. The tariff imposed on India is significantly higher than the rates agreed upon in trade deals with other countries,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He termed it a typical “Trumpian strategy” aimed at negotiating better deals from India in other areas, likely culminating in a final tariff rate of around 20 per cent or lower.
“Nifty is unlikely to fall below the support level of 24,500. Investors can consider buying on dips, with a focus on domestic consumption themes. Sectors like private sector banking, telecom, capital goods, cement, hotels, and select auto stocks that performed well in Q1 remain attractive,” he added.
Almost all sectoral indices turned red in morning trade, with auto, energy, pharma, PSU banks, financial services, metal, realty, and public sector enterprises (PSEs) among the top laggards.
In the Sensex pack, M&M, Bharti Airtel, Reliance, Infosys, HCL Tech, Titan, SBI, TCS, ICICI Bank, Trent, L&T, HDFC Bank, and NTPC were among the top losers. On the other hand, Power Grid, Tata Steel, ITC, and HUL emerged as the top gainers.
In terms of institutional activity, foreign institutional investors (FIIs) continued their selling streak for the eighth straight session on July 30, offloading equities worth ₹850 crore. In contrast, domestic institutional investors (DIIs) extended their buying spree for the 18th consecutive session, purchasing equities worth ₹1,829 crore on the same day.
-IANS
