Mumbai (Maharashtra) [India], December 9 : Indian stock markets opened in heavy selling mode on Tuesday after fresh remarks by US President Donald Trump indicating an additional 25 per cent tariff on rice imports into the United States.
The comments have dampened any anticipation of relief from the ongoing visit of a high-powered US trade delegation to India, further unsettling market sentiment.
The benchmark Nifty 50 index opened at 25,867.10, registering a decline of -93.45 points or (-0.36 per cent), while the BSE Sensex began the day at 84,742.87, down by -359.82 points or -0.42 per cent.
Experts observed that markets have entered oversold territory and may respond swiftly to any positive trigger.
Ajay Bagga, Banking and Market Expert, told ANI, "Indian markets have reached oversold territory. Trump's remarks on levying additional tariffs on Indian rice exports are spoiling the anticipation of any relief from the visit of a high-powered US trade delegation to India. FPI positioning is back to an 88 per cent net short position with continued FPI outflows adding to liquidity outflows due to promoter selling and record primary market issuances. Standstill in global markets as the hawkish Fed rate cut on Wednesday is awaited."
On Monday, President Donald Trump indicated he may introduce new tariffs on agricultural imports, specifically targeting Indian rice and Canadian fertiliser, as trade conversations continue without substantial progress.
The US President made these remarks during a meeting at the White House, where he unveiled USD 12 billion in fresh support for American farmers, saying imports were challenging domestic producers and reaffirming his intent to take corrective measures.
Broad market pressure was visible across indices as Nifty 100 fell 0.56 per cent, Nifty Midcap lost 0.81 per cent, and Nifty Smallcap declined 0.84 per cent, reflecting widespread selling.
Sectoral indices on the NSE also witnessed weakness, with Nifty Media, Metal, and IT logging losses of more than 1 per cent. Nifty Auto slipped 0.77 per cent, Nifty Pharma declined 0.44 per cent, and Nifty PSU Bank fell 0.72 per cent.
Ponmudi R, CEO, Enrich Money, said, "Indian equity markets enter today's session in a cautious consolidation phase following a controlled corrective pullback from recent highs. Global cues remain mixed ahead of the crucial U.S. Federal Reserve policy decision. Nifty 50 continues to remain in a sideways-to-bullish structure as long as it holds above the key 25,850 support."
In the broader Asian market cues, Japan remained the only major index trading in green, with Nikkei 225 up 0.35 per cent, while Hong Kong's Hang Seng slipped 0.8 per cent, Taiwan's weighted index fell 0.30 per cent, and South Korea's KOSPI declined 0.72 per cent, reflecting weakness across the region.
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