Opening Bell : Markets likely to make flat to negative opening amid US imposes additional 25% tariff
Indian equity markets are likely to make flat to negative opening on Thursday after U.S. President Donald Trump signed an executive order imposing an additional 25 percent tariff on India as a penalty in response to its continued purchase of Russian oil. Additionally, sustained selling by foreign portfolio investors (FPIs) could further dampen markets sentiments.
Some of the key factors to be watched:
Trump slaps additional 25% tariff on Indian goods over purchase: US President Donald Trump has slapped an additional 25 percent tariff, raising it to 50 percent, on goods coming from India as penalty for New Delhi's continued purchase of Russian oil, a move that is likely to hit sectors such as textiles, marine and leather exports hard.
Trump tariffs may impact India's 55% exports to US: Federation of Indian Export Organisations (FIEO) DG Ajay Sahai said the US' decision to impose an additional 25 percent tariff on Indian goods is extremely shocking and will impact 55 percent of India's exports to US.
India, Russia exploring opportunities in rare earth, critical minerals extraction: The government said that India and Russia are exploring opportunities in rare earth and critical minerals extraction, underground coal gasification, and creation of modern industrial infrastructure.
Central bank taking all necessary steps to support economic growth: Amid uncertainties over global trade front, Reserve Bank Governor Sanjay Malhotra has said that the central bank is taking all necessary steps to support economic growth.
RBI issues revised directions on co-lending arrangements: The Reserve Bank has issued revised directions on co-lending arrangements (CLA) to provide specific regulatory clarity on the permissibility of such arrangements and address some of the prudential as well as conduct-related aspects.
On the global front: The U.S. markets ended in green on Wednesday, boosted by robust corporate earnings. Asian markets are trading mostly in green on Thursday, despite Trump vowed to impose a 100 percent tariff on semiconductor and chip imports.
Back home, Indian equity benchmarks ended lower for the second consecutive session on Wednesday after Reserve Bank of India's Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, decided to keep policy rate unchanged at 5.5 per cent and retained the neutral stance, weighed by concerns over tariff uncertainties. Finally, the BSE Sensex fell 166.26 points or 0.21% to 80,543.99 and the CNX Nifty was down by 75.35 points or 0.31% to 24,574.20.
Some of the important factors in trade:
US did not accept India's request for consultations at WTO over import tariffs: Minister of State for Commerce and Industry Jitin Prasada has said that the US did not accept India's request for consultations under an agreement of the World Trade Organisation (WTO) concerning American tariffs on steel, aluminium, and related derivative products.
RBI retains growth, lowers inflation forecast: The Reserve Bank retained the GDP growth projection for the current fiscal year at 6.5 per cent while lowering the inflation forecast to 3.1 per cent from 3.7 per cent.
Banks' profitability to moderate slightly in FY26: India Ratings and Research (Ind-Ra) in its latest report has said that banks' profitability is set to moderate slightly in the ongoing financial year (FY26) as lenders set aside higher sums of money for covering potential loan losses and a narrowing in net interest margins due to the rate cuts.
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