Indian equity indices recovered sharply in the later hours of the trade on Thursday after reports suggested that US President Donald Trump is likely to meet Russian President Vladimir Putin. The NSE Nifty 50 opened 0.24% lower at 24,500. The BSE Sensex opened 220 points lower at 80,320.
Similarly, Bank Nifty opened 125 points or 0.23% lower at 55,285. In line with the benchmarks, the small and midcap stocks traded lower. The Nifty Midcap fell 272 points to 56,478.
The market is unlikely to panic, but weakness will continue in the near term. Since uncertainty is high, investors should be cautious in their approach, said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
“The 21-day window for the additional 25% tariff to take effect leaves room for negotiation and an eventual deal with the US. But there is huge uncertainty surrounding the trade policy, and both nations will be willing to make compromises. President Trump, fresh from the successes he has extracted in deals with others, including the EU, is unlikely to budge significantly from his unjustified stand. Unfortunately for India, the US is bargaining from a position of strength. India’s response has been mature and measured,” added Vijayakumar.
“From a technical perspective, the market is still maintaining a lower top. The daily charts have formed a small bearish candle, which indicates a largely negative outlook. We believe that while the short-term market outlook remains weak, it is also oversold. On the downside, the support zone is identified at 24,450, while the 24,750 level will serve as a crucial resistance area for the bulls,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Let’s take a look at the key factors to watch out for today’s trading session
Early gainers and laggards
In early trade, among the Nifty 50, top gainers at this hour were Hero MotoCorp, Trent, Cipla, ITC, and Nestle India. On the flip side, the key laggards in the Nifty 50 pack included Adani Ports and SEZ, Tata Motors, Kotak Mahindra Bank, Bajaj Auto, and Adani Enterprises.
Major movers on Thursday
The stocks that remained under pressure included Reliance Industries, Kotak Mahindra Bank, Infosys, ICICI Bank, and Tata Motors, which were the major movers in the morning trade.
50% tariff shock: Trump targets Indian exports over Russian oil trade
U.S. President Donald Trump has announced higher duties on Indian goods, blaming India’s continued purchases of Russian oil. The new order adds another 25% duty on a wide list of exports, pushing the total tariff on many products to 50%. This move, which mirrors Brazil’s tariff levels, will come into effect from August 27. An earlier 25% duty is already scheduled to begin on August 7. Key sectors likely to feel the heat include textiles, automobiles, and jewellery.