Opening Bell : Markets likely to make cautious start amid uncertainty around trade tariffs
Indian equity markets are likely to make cautious start on Tuesday. Traders are likely to remain cautious about the US President Donald Trump threatening India with higher tariffs. Additionally, sustained selling by foreign portfolio investors (FPIs) could further dampen markets sentiments.
Some of the key factors to be watched:
India's exports to US may fall 30% to $60.60 billion this fiscal due to Trump tariff: Think tank GTRI said the additional 25 per cent import duty announced by US President Donald Trump on Indian goods could lead to a 30 per cent decline at $60.60 billion in India's exports to America this fiscal.
RBI's MPC start deliberations on bi-monthly policy: The RBI Governor Sanjay Malhotra-headed rate-setting panel has started the three-day deliberations to decide the next bi-monthly monetary policy amid expectations of pause in the rate easing cycle.
Trump says he will 'substantially' raise tariffs on India over Russian oil purchase: In a fresh trade threat against India, US President Donald Trump said that he will substantially raise US tariffs on India, accusing it of buying massive amounts of Russian oil and selling it for big profits.
India's tea production dips 9% to 133.50 million kg in June: Tea Board said that India's tea production dipped 9 per cent to 133.50 million kg in June as compared to the same month of the previous year.
Aviation stocks will be in focus: The global airlines' grouping International Airport Transport Association (IATA) report showed that India emerged as the world's fifth biggest aviation market, handling 241 million passengers, while Mumbai-Delhi was one of the busiest airport pairs in 2024.
On the global front: The U.S. markets ended green on Monday amid rising optimism of Federal Reserve’s rate cut in September following weak jobs data. Asian markets are trading mostly in green on Tuesday, tracking positive cues from Wall Street overnight.
Back home, snapping a two-day losing streak, Indian equity benchmarks experienced a positive trading session and ended over half a percent higher on Monday, supported by robust buying in Metal, Realty and Basic Materials shares, improved global cues, and renewed optimism ahead of major corporate earnings and the upcoming RBI policy announcement. Finally, the BSE Sensex rose 418.81 points or 0.52% to 81,018.72 and the CNX Nifty was up by 157.40 points or 0.64% to 24,722.75.
Some of the important factors in trade:
RBI MPC deliberates on Bi-Monthly Policy: The RBI Governor Sanjay Malhotra-headed rate-setting panel on Monday started the three-day deliberations to decide the next bi-monthly monetary policy amid expectations of pause in the rate easing cycle.
Oil prices drop: Underlying sentiment was also supported by falling oil prices on supply glut fears and a weaker dollar due to tariff-related worries and growing fears of political influence on key institutions in the U.S.
Kharif crops sowing this season may exceed level of last year by reasonable margin: ICRA in its latest report has said that kharif crops sowing this season may exceed the level of last year by a reasonable margin. It said aided by favourable monsoon, kharif sowing has been completed on 76 per cent of the normal sown area and is up by a rise of four per cent year-on-year as of July 2025.
Above views are of the author and not of the website kindly read disclaimer
