Donald Trump tariff impact on stock market today: Nifty50 opens below 24,700; BSE Sensex down 600 points as 25% duties, penalty on India announced

Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, dropped sharply in opening trade on Thursday after US President Trump announced 25% tariff plus additional penalty on India. While Nifty50 went below 24,700, BSE Sensex was down 600 points. At 9:16 AM, Nifty50 was trading at 24,666.10, down 189 points or 0.76%. BSE Sensex was at 80,882.15, down 600 points or 0.74%.Markets are expected to respond to Trump’s announcement of a 25% tariff on India. Analysts suggest maintaining prudent positioning and advocate for protected trading strategies, considering the expected market fluctuations.Individual stock movements are expected to remain prominent as companies continue to announce their financial results.US President Donald Trump announced 25% tariffs on Indian exports to America, effective August 1. The biggest risk seen by market experts is the ‘additional; penalty’ announced by Trump for India’s oil and arms purchases from Russia.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “The 25 % tariff on India plus an unspecified penalty for energy and defence-related purchases from Russia is very bad news for Indian exports and thereby on the growth prospects of the Indian economy in the short run. Since trade negotiations with India are continuing, perhaps, the 25 % tariff may come down eventually. But certainly, there is a short-term hit to Indian exports and GDP growth. This short-term hit will reflect in the stock market, too, in the short-term.”“From the investor perspective it is important to understand that the 25% tariff will come down after the negotiations which start in mid-August. The 25% tariff imposed on India is far higher than the rates reached in trade deals with other countries. This is the typical Trumpian strategy to get better deals from India in other areas and finally settle at a tariff rate around 20 % or less. Nifty is unlikely to go below the support level of 24500. Investors can buy the dip focusing on domestic consumption themes, particularly segments like leading private sector banking names, telecom, capital goods, cement, hotels and select autos which have done well in Q1.”US stocks retreated from session highs on Wednesday following Federal Reserve Chairman Powell’s comments dampening hopes for a September rate reduction.Gold prices recovered on Thursday after hitting a one-month low in the previous session. The recovery was driven by increased bullion demand due to trade uncertainties following new US tariff announcements, with investors taking advantage of lower prices despite diminished expectations of a US rate reduction.Oil prices continued their upward trend for the fourth consecutive day on Thursday, as market participants expressed concerns about supply constraints amidst US President Donald Trump’s efforts for quick resolution of the Ukraine conflict and warnings of tariffs for Russian oil purchasers.Foreign portfolio investors sold shares worth Rs 850 crore net on Wednesday, whilst domestic institutional investors made net purchases of Rs 1,829 crore.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)