Indian stock markets opened on a cautious note on Friday after US President Donald Trump signed an executive order imposing 25% tariffs on Indian exports, effective August 7. The move has intensified worries over India’s export competitiveness in its largest trading partner’s market. While indices showed signs of resilience early on, sentiment remained subdued with broader concerns over earnings and weak domestic demand adding to the gloom.
Nifty and Sensex Show Early Weakness
The Nifty 50 opened down by 33.45 points (0.14%) to 24,734.90, while the BSE Sensex declined 111.17 points (0.14%) to 81,074.41. Market participants are reacting not just to Trump’s tariffs but also to unimpressive corporate earnings and lack of domestic policy triggers.
Ajay Bagga, a noted market and banking expert, told ANI, “Markets are caught in a narrow range. Without bold reform signals or fiscal stimulus, there’s no real catalyst to drive an upward move. The tariff shock, coupled with policy inertia, is weighing heavily on investor sentiment.”
Tariff Delay Doesn’t Calm Jitters
Though the US delayed the tariff implementation to August 7 to give Customs time to adjust, the policy unpredictability is spooking global markets. The US order clearly stated the change would apply to goods entered for consumption seven days after the executive order, i.e., from 12:01 a.m. EDT on August 7.
According to Bagga, “Markets across the globe—from the US to Asia—are showing signs of fatigue. We are seeing red across indices, and this trend may persist unless there’s clarity or stability in trade policies.”
Sectoral and Broader Market Trends
Among NSE sectoral indices, only Nifty FMCG stayed in the green, supported by defensive buying. Others like Nifty IT (-0.51%), Nifty Metal (-0.43%), Nifty Pharma (-1.16%), and Nifty PSU Bank (-0.30%) opened weak.
The Nifty 100 was down 0.18%, Nifty Midcap 100 edged up 0.04%, while Nifty Smallcap slipped 0.29%.
Experts Set Key Support and Resistance Levels
Shrikant Chouhan from Kotak Securities said, “As long as Nifty trades above 24,750, a pullback can take it to 24,900 or 25,000. But if it breaks below 24,600, markets may enter a fresh correction zone.”
Similarly, Bank Nifty remains under pressure. Analysts say a fall below 55,700 could drag it to 55,500.
Global Mood Weakens
Asian markets followed suit. Nikkei 225 was down 0.23%, Hang Seng dropped 0.43%, and Taiwan’s benchmark also traded lower.
Other Tariff Targets Also Named
Apart from India, the US slapped fresh tariffs on several nations: Indonesia (19%), Japan (15%), Myanmar (40%), New Zealand (15%), Pakistan (19%), Philippines (19%), South Africa (30%), South Korea (15%), and Sri Lanka (20%).
Big Earnings Day Ahead
Investors now await Q1 results from companies like ITC, Adani Power, Tata Power, Godrej Properties, UPL, MCX, LIC Housing Finance, and Delhivery. These reports may offer temporary direction amid tariff-fueled volatility.
