Indian equity markets opened in the red on Thursday, extending losses as investor sentiment took a hit following US President Donald Trump’s announcement of an additional 25 per cent tariff on Indian goods, citing continued purchases of Russian oil by India.
The latest tariff hike effectively makes Indian exports to the US 50 per cent more expensive, prompting concerns over trade relations and triggering a broad-based sell-off across sectors.
At opening bell, the Nifty 50 fell 110 points or 0.45% to 24,464.20, while the BSE Sensex declined 281.01 points or 0.35%, starting the day at 80,262.98. Market mood remained cautious, with most benchmarks in decline.
According to a note by SBI Securities, the Nifty index has been consolidating between 24,784 and 24,535 over the past four sessions, reflecting heightened investor uncertainty. Analysts noted that unless there’s clarity on US-India trade negotiations, the market is likely to continue in this narrow, range-bound pattern.
The bearish trend extended across broader indices:
- Nifty 100 down 0.34%
- Nifty 200 fell 0.37%
- Nifty Midcap 100 slipped 0.54%
- Nifty Smallcap 100 dropped 0.82%
Sectoral indices also mirrored the pressure:
- Nifty Auto down 0.40%
- Nifty Metal fell 0.63%
- Nifty IT declined 0.20%
- Nifty PSU Bank down 0.46%
- Nifty Media slipped 0.17%
- Nifty Pharma edged lower by 0.10%
On Wednesday (US time), President Trump signed an executive order imposing new tariffs, directly linking the action to India’s ongoing oil imports from Russia.
Reacting strongly, the Ministry of External Affairs (MEA) issued a statement calling the US decision “unfair, unjustified, and unreasonable.” The ministry emphasized that India’s oil imports are based on market dynamics and are essential for the energy security of its 1.4 billion citizens.
The MEA added, “India will take all actions necessary to protect its national interests.”
With diplomatic tensions rising and trade uncertainty looming, market participants are expected to remain cautious until a clear resolution emerges between New Delhi and Washington.
