Gift Nifty slips over 160 points after Trump announces 25% tariff on India

Gift Nifty futures declined sharply on Wednesday, falling 162 points or 0.65 per cent to 24,691.5, after US President Donald Trump announced a 25 per cent tariff on Indian goods, along with an additional penalty. The move, which unsettled the market, comes as Trump once again criticised India's trade policy and its ties with Russia.

The tariff declaration was made via Trump's post on his social media platform, Truth Social. In the statement, he wrote, "India will therefore be paying a tariff of 25 per cent, plus a penalty for the above, starting on August 1. Thank you for your attention to this matter." The announcement triggered concerns over its potential impact on India's exports and overall trade dynamics with the US.

Trump's move is being seen as a reaction to India's economic engagement with Russia, particularly in sectors such as energy and defence. The statement highlighted his dissatisfaction with India's long-standing trade policies and ties with Moscow.

Earlier in the day, Indian equity benchmarks closed on a positive note for the second consecutive session, largely supported by strong buying interest in infrastructure major Larsen & Toubro Ltd (L&T). The 30-share BSE Sensex pack rose 144 points or 0.18 per cent to end at 81,482 while the broader NSE Nifty index climbed 34 points or 0.14 per cent to close at 24,855.

According to exchange data, foreign institutional investors (FIIs) were net sellers, offloading equities worth Rs 942.43 crore. In contrast, domestic institutional investors (DIIs) purchased equities worth Rs 1,805.10 crore.

Nifty outlook

"Nifty traded within a narrow range. The short-term trend remains slightly weak as the index continues to sustain below this critical moving average. However, the possibility of a meaningful recovery stays intact, supported by a bullish reversal pattern formation and a hidden positive divergence. In simple terms, the index may continue to move up towards 25,000–25,200 in the short term, with support placed at 24,750. A break below this level could weaken market sentiment," said Rupak De, Senior Technical Analyst at LKP Securities.