Will Trump tariffs on India affect stock market? What's expected today

Indian stock market is expected to open lower on Thursday, August 28, owing to the additional 25 per cent tariffs on India by the Donald Trump-led US administration that took effect on Wednesday, when the stock market was closed on account of Ganesh Chaturthi.

A man reads a newspaper with reports on tariffs after US President Donald Trump announced an additional 25% tariff on Indian goods(REUTERS)

On Tuesday, Nifty and Sensex both fell about one per cent, their sharpest single-day percentage drop in three months, according to figures in a Reuters report.

Gift Nifty futures were trading at 24,665.5 points as of 7:31 am on Thursday, signalling that the Nifty 50 will open below Tuesday's close of 24,712.05.

Trump's 25 per cent additional tariffs on Indian imports over Russian oil purchase kicked in on Wednesday, August 27, officially doubling the total India duties to 50 per cent. An existing 25 per cent tariff on goods going from India to the US was already in place.

Also Read | Who gets hit, who escapes Trump's 50% tariffs on India: Details on sectors affected

Analysts say the tariff measure by Donald Trump on Indian goods, which affect some sectors like gems and jewellery and seafood the most, have already sparked a sharp selloff.

"This measure has already triggered a sharp selloff and is expected to maintain pressure on the market in the near-term," Reuters quoted Santosh Meena, head of research at Swastika Investmart.

India's export-oriented sectors such as textiles and apparel, gems and jewellery, seafood, chemicals and auto component sectors are exposed to a hard hit by the Donald Trump tariffs.

However, sectors like pharmaceuticals, smartphones and energy have been spared, for now.

See Less