India’s equity benchmarks are expected to open flat on Monday, as global trade concerns weighed on risk sentiment following U.S. President Donald Trump’s decision to impose reciprocal tariffs on several countries this week.
The Gift Nifty futures were trading at 23,560.5, as of 08:09 a.m. IST, indicating that the benchmark Nifty 50 will open near Friday’s close of 23,559.95.
Other Asian markets inched lower, with the MSCI Asia ex-Japan index shedding 0.2%.
The U.S. dollar strengthened, while Wall Street equities closed lower on Friday as rising global trade tensions and weak economic data left investors rattled.
Trump said on Friday he plans to announce reciprocal tariffs on many countries by Monday or Tuesday of next week, a major escalation of his offensive to tear up and reshape global trade relationships in the U.S.’ favor.
The imposition of reciprocal tax would fulfill Trump’s campaign promise to impose tariffs on American imports equal to rates that trading partners impose on American exports.
Indian Prime Minister Narendra Modi is preparing additional tariff cuts ahead of his meeting with Trump to boost U.S. exports to India and avoid a potential trade war, according to a Reuters report. Modi will visit Washington on Wednesday for talks with Trump.
The U.S. President also repeated warnings of imminent tariffs, including on steel and aluminium imports, an inflationary move that could limit the scope for rate cuts.
Indian stocks dip as rate cut leaves investors wanting more
Higher rates in the U.S. make investments in emerging markets such as India less attractive for foreign investors.
Foreign portfolio investors have offloaded Indian shares worth about $9.9 billion on a net basis in 2025 so far, according to the National Securities Depository.
The rupee, which logged its worst weekly decline since December 2022, is likely to remain under pressure this week due to the risks of trade tariffs, ahead of crucial U.S. inflation data.
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