Nifty, Sensex open flat amid fresh threat of higher tariffs by Trump due to Russian oil imports

Mumbai (Maharashtra) [India], August 5 (ANI): 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 USA."

A new social media post from Trump threatening the levy 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.

Among sectoral indices, Nifty Auto declined by 0.40 per cent, Nifty FMCG lost 0.14 per cent, Nifty IT fell by 0.42 per cent, and Nifty Realty dipped 0.15 per cent. However, Nifty Media, Metal, Pharma, and PSU Bank opened with minor gains.

Sectors with significant exposure to US export markets such as gems, jewellery, leather goods, textiles, auto ancillaries, auto, and chemicals may face some impact. The focus is expected to shift to domestic-oriented sectors.

In other Asian markets, all major indices were trading in green at the time of filing this report, except Hong Kong's Hang Seng index, which was marginally down. Japan's Nikkei 225 index gained 0.75 per cent, Singapore's Straits Times rose 0.43 per cent, Taiwan's Weighted index surged 0.87 per cent, and South Korea's KOSPI rallied 1.24 per cent.

In the US, markets closed on a strong note on Monday, with the S&P 500 index rising 1.47 per cent and the Nasdaq gaining 1.95 per cent, reflecting strong investor sentiment. (ANI)

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