India’s equity benchmarks are set to open little changed on Tuesday after U.S. President Donald Trump reiterated his threat of harsh tariffs on goods from India over its Russian oil purchases.
Gift Nifty futures were trading at 24,766 points as of 7:59 a.m. IST, indicating that the Nifty 50 will open around its previous close of 24,722.75.
Trump on Monday threatened to raise tariffs on goods from India over its Russian oil purchases, while New Delhi called his attack “unjustified” and vowed to protect its economic interests, deepening the trade rift between the two countries.
Analysts said the ongoing trade rift has hit the market sentiment, and expect benchmarks to remain in a range-bound trade until there is clarity over U.S. tariffs.
The uncertainty has partly driven sustained foreign outflows from India. Foreign investors have sold Indian shares for 11 straight sessions till Monday, per provisional data.
The Reserve Bank of India’s policy decision on Wednesday will also be in focus.
The central bank is expected to hold interest rates steady, but the odds of another cut have risen as the U.S. tariffs are adding to pressure on growth.
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