Indian stock markets opened on a cautious note on Tuesday as investors remained wary of fresh tariff threats from US President Donald Trump.
The Nifty 50 index opened almost flat but in red at 24,720.25, down by 2.50 points or 0.01 per cent, while the BSE Sensex also slipped at the open, down by 72.29 points or 0.09 per cent at 80,946.43. Market experts said the uncertainty triggered by Trump’s recent remarks is keeping investors on edge.
Ajay Bagga, banking and market expert, said, “Trump Tantrums are overlaying an otherwise sea of green across global markets. Indian markets bounced back from oversold levels on Monday in line with a global markets recovery from Asia to Europe to the USA.”
A new social media post from Trump threatening the levying of secondary tariffs on India for buying Russian crude oil became a source of worry.
He added, “With the Trump deadline to Putin to announce a ceasefire expiring on Friday, these secondary tariffs may be announced on Friday.” Bagga further explained, “The impact of Trump tariffs on Indian markets has been largely absorbed. Any increase in the already high 25 per cent tariffs on India will impact trade between the two countries. We expect the market impact to be limited given the MSCI India revenue dependence on US goods exports being at 2 per cent.”
In the broader market on NSE, the Nifty 100 was down by 0.14 per cent, while the Nifty Smallcap 100 surged by 0.20 per cent. The Nifty Midcap index was trading flat.
