India’s stock benchmarks may open lower on US tariff concerns
- Gift Nifty futures were trading at 24,914.5 points
India’s equity benchmarks are expected to open marginally lower on Tuesday, weighed by concerns over U.S. tariffs after Washington issued a draft notice for levying up to 50% tariffs on Indian goods from Wednesday.
Gift Nifty futures were trading at 24,914.5 points as of 07:49 a.m. IST, indicating that the Nifty 50will open below Monday’s close of 24,967.75.
U.S. President Donald Trump had announced 25% punitive tariffs on Indian goods over New Delhi’s purchase of Russian oil amid the war in Ukraine, adding to the 25% duties already in effect.
The U.S. Department of Homeland Security outlined the procedure to implement the additional 25% tariffs on Indian goods in a draft notice on Monday.
A planned visit by U.S. trade negotiators to New Delhi from August 25-29 has been called off, dashing hopes that the tariffs might be lowered or postponed.
The steep 50% tariffs would mean Indian goods will face one of the highest U.S. levies, putting it at a significant disadvantage against regional competitors, such as Vietnam and Bangladesh.
“Investors continue to be in (the) ‘wait-and-watch’ mode, with primary focus on the August 27 tariff deadline and the goods and services tax rationalisation expected late next month,” said Sidhanth Paul, research analyst at Capitalmind Research.
Indian markets will be closed on Wednesday for a local holiday.
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