India’s benchmark Nifty 50 index may open a tad higher on Wednesday, after logging the longest losing run in its three-decade history in the last session, aided by gains in Asian peers as the U.S. Commerce chief hinted at some relief on Canada and Mexico tariffs.
The GIFT Nifty futures were trading at 22,110.5 as of 08:27 a.m. IST, indicating that the blue-chip Nifty 50 will likely open above Tuesday’s close of 22,082.65.
Most Asian markets gained on the day, with the MSCI Asia ex Japan (.MIAPJ0000PUS), opens new tab adding 0.7%, on hopes of a partial roll-back of U.S. tariffs on Canada and Mexico.
Both Mexico and Canada have warned of retaliatory duties on the U.S. after Trump’s tariffs came into effect on Tuesday.
Investors are monitoring U.S. President Donald Trump’s address to Congress for any cues into future tariff actions.
Analysts expect sentiments in India to remain weak until there is more clarity on tariffs, particularly the reciprocal duties on India and other countries that are expected to take effect next month.
Higher U.S. tariffs could derail global growth and add to inflationary pressures, leading to higher interest rates for longer and spurring foreign outflows from emerging markets such as India.
The blue-chip Nifty 50 fell for the tenth consecutive session on Tuesday, losing about 4% in the period, amid continued selling by foreign portfolio investors (FPIs) on worries over U.S. tariffs and slowing domestic earnings growth momentum.
FPIs sold Indian shares worth 34.05 billion rupees ($390.3 million) on Tuesday and nearly $15 billion year-to-date.