Markets Fall As Trump's Tariffs Kick In | Bulls Bleed On F&O Expiry. Bond Yields Up, Nifty Down

On the last trading day of August’s F&O expiry, Indian markets witnessed high volatility as the Nifty slipped to a three-week low following the U.S.’s decision to impose fresh 25% tariffs on Indian merchandise exports, before recovering to 24,662 on short-covering. While auto ancillaries, led by Maruti suppliers, rallied on news of a possible GST rejig, banking and IT stocks remained under pressure. Rising concerns in the bond markets also surfaced as the Indian 10-year yield spiked to a five-month high, amid fears of lower tax collections and increased government borrowing. In an exclusive conversation, Rumki Majumdar, Economist at Deloitte India, shares insights on GDP growth estimates, GST rationalisation, private capex, inflation trends, rupee outlook, and India’s trade strategy amid escalating U.S. tariffs. With Q1 GDP numbers due tomorrow, this discussion provides a complete picture of where the economy and markets are headed.