Mumbai (Maharashtra) [India], August 7 : The selling pressure continued in Indian markets on Thursday after US President Donald Trump announced an additional 25 per cent tariff on Indian goods.
With this new move, Indian exports to the United States have now become 50 per cent more expensive. The news has triggered concerns among investors, leading to a sell-off across major indices.
The benchmark Nifty 50 index opened at 24,464.20, down by 110.00 points or 0.45 per cent, while the BSE Sensex opened at 80,262.98, declining by 281.01 points or 0.35 per cent. Both indices reflected the cautious mood in the market following the US decision.
SBI Securities, in a market note, mentioned that the Nifty index has been consolidating between 24,784 and 24,535 over the last four trading sessions. This range-bound movement reflects the uncertainty and cautious sentiment among investors.
The firm noted that a lack of clarity around trade negotiations between India and the United States is adding to market nervousness. Unless there is a clear outcome or breakthrough in talks, the index may continue to trade within this narrow band. A breakout on either side will likely set the tone for the next market direction.
Broad indices on the NSE also showed signs of pressure. Nifty 100 opened lower by 0.34 per cent, Nifty 200 was down by 0.37 per cent, Nifty Midcap 100 slipped by 0.54 per cent, and Nifty Smallcap 100 lost 0.82 per cent, indicating widespread selling across market capitalizations.
Sectoral indices, too, witnessed a decline. Nifty Auto fell by 0.40 per cent, Nifty IT declined by 0.20 per cent, and Nifty Metal dropped by 0.63 per cent. Nifty Pharma was down 0.10 per cent, Nifty PSU Bank declined by 0.46 per cent, and Nifty Media lost 0.17 per cent, showing selling pressure across all sectors.
US President Donald Trump, in an executive order signed on Wednesday (US Time), announced the new tariffs on Indian goods. He stated that the decision was made due to India continuing to buy oil from Russia.
In response, India strongly objected to the move. The Ministry of External Affairs (MEA) called the US decision "unfair, unjustified and unreasonable."
In an official statement, the MEA said, "The United States has in recent days targeted India's oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India."
The ministry added that India will take "all actions necessary to protect its national interests."
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