MUMBAI: Indian shares declined on Tuesday as investors stayed cautious after US President Donald Trump’s renewed threat of harsh tariffs on goods from India over the country’s purchases of Russian oil and ahead of the local central bank policy decision.
The Nifty 50 fell 0.3% to 24,649.55 points and the BSE Sensex lost 0.38% to 80,710.25. Trump on Monday threatened to impose higher tariffs on goods imported from India, prompting New Delhi to call the move “unjustified” and pledge to safeguard its economic interests, further straining ties between the two nations.
Twelve of the 16 major sectors declined, with broader small-cap and mid-cap indexes down 0.2% and 0.4%, respectively. Yogesh Patil, CIO-equities at LIC Mutual Fund, told Reuters’ Trading India forum that he expects US trade uncertainty to keep Indian markets volatile in the short term, but is optimistic about their medium- to long-term prospects given strong domestic fundamentals. Meanwhile, investors are waiting for the Reserve Bank of India’s policy decision on Wednesday, in which it is expected to hold its key rate at 5.50%.