India’s benchmark indexes are likely to open lower on Friday amid weak global sentiments as US President Donald Trump’s extensive tariff announcements ignited fears of a global recession.
The GIFT Nifty futures were trading at 23,229.5 as of 7:45 a.m. IST, indicating that the blue-chip Nifty 50 will open below Thursday’s close of 23,250.1.
Wall Street recorded its biggest single-day percentage losses since 2020, wiping out $2.4 trillion in market value, as investors grew anxious about a global trade war and recession.
The US announced baseline tariffs of 10% on all imports as well as higher reciprocal tariffs on several trading partners that have a trade surplus with the world’s largest economy.
India was hit with a 27% retaliatory levy, lower compared to China’s 34%, Vietnam’s 46% and Bangladesh’s 37%.
The relatively lower tariffs and exemption of the pharmaceutical sector limited losses in Indian equities on Thursday.
The fall in crude oil prices, which can reduce India’s fiscal deficit and lower raw material costs for companies, also provided some comfort, analysts said.
Indian shares endure US tariff jolt; relatively lower duties limit losses
However, foreign portfolio investors (FPIs) sold Indian shares worth 28.06 billion rupees ($329.04 million) on Thursday, as per provisional data.
“At this juncture, the risk-reward balance appears to favor domestic-facing sectors due to minimal impact from reciprocal tariffs, while export-oriented sectors will remain in a wait-and-watch mode, contingent on further developments and their impact,” said Axis Securities.
Asian markets were mixed on the day, with MSCI Asia ex-Japan down 0.2%.
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