Indian benchmarks are likely to open marginally lower on Friday after the U.S. slapped dozens of trading partners with steep tariffs and reiterated 25% duty on imports from India.
The Gift Nifty futures were trading at 24,732.5 points as of 7:57 a.m. IST, indicating that the Nifty 50 will open below its previous close of 24,768.35.
The benchmark Nifty and Sensex fell as much as 0.9% on Thursday, but pared some losses to end 0.4% lower as investors viewed the United States’ 25% tariff threat on India as a pressure tactic and hoped for lower rates once negotiations conclude.
The negotiations between the two countries are continuing, Trump said on Wednesday, after announcing tariffs on India.
Elsewhere, U.S. increased tariffs to 35% from 25% on Canada, a top trading partner, and set duties at 20% for Taiwan and 19% for Thailand.
MSCI’s broadest index for Asia-Pacific stocks outside Japan fell 0.7% after Trump’s fresh tariffs. Investors await U.S. jobs data that could make or break the case for a Fed rate cut next month.
Higher U.S. interest rates make emerging market equities such as India’s less attractive for foreign portfolio investors (FPIs), who have been on a selling spree this month.
On Thursday, FPIs sold Indian shares worth 55.89 billion rupees ($638.23 million), marking their ninth consecutive session of selling, as per provisional data.
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