India’s stock benchmarks set to open lower as punitive US duties take effect

India’s equity benchmarks are set to open lower on Thursday, a day after additional 25% punitive U.S. tariffs on Indian imports took effect, with analysts warning of near-term pressure on markets.

Gift Nifty futures were trading at 24,665.5 points as of 07:31 a.m. IST, indicating that the Nifty 50 will open below Tuesday’s close of 24,712.05.

Nifty and Sensex both fell about 1% on Tuesday, their sharpest single-day percentage drop in three months, before the U.S. tariffs went live. Domestic markets were shut on Wednesday due to a local holiday.

According to analysts, markets are facing significant headwinds after the U.S. implemented the extra 25% tariff on Indian goods over New Delhi’s purchase of Russian oil, taking the total tariffs to 50%.

“This measure has already triggered a sharp selloff and is expected to maintain pressure on the market in the near-term,” said Santosh Meena, head of research at Swastika Investmart.

The tariffs are a direct challenge to India’s export-oriented sectors such as textiles and apparel, gems and jewellery, seafood, chemicals and auto component sectors, Meena said.

Foreign portfolio investors have sold, opens new tab Indian shares worth $2.66 billion in August so far, the highest outflows since February, amid tariff concerns and a muted corporate earnings season.

Oil prices fell as investors weighed the outlook for U.S. fuel demand and assessed potential crude supply shifts as India faces punishing U.S. tariffs over Russian oil imports.