NSE CEO Ashish Kumar Chauhan on August 8 said foreign investors have been sanguine about Indian markets despite tariffs announced by US President Donald Trump.
"The foreign outflow from markets post tariff announcement in March-April has not been that much, which has surprised us but also the fact that US dollar itself has lost 10% in value," Chauhan said in an interview with CNN-News18.
When asked about the market resilience despite Trump tariffs, Chauhan said, "When Covid happened for the first time markets fell by 40% but later on nothing much happened despite new news on Covid. When Trump took over in late January and he started making noise and that's when markets reacted a lot. But later on, markets priced in whatever he said."
About the 1% fall in markets on August 8, Chauhan said, "Today, markets fell by 1% which is an impact of the Trump tariff but Trump does a lot of to and fro. He does something and then takes it back and does something else. Other part is that he's not doing this only for India. Because we are the affected party, we think he's doing it with India but he's troubling everyone equally whether EU or Japan or Korea, which have been their staunchest allies."
"Overall, he's a person in search of deals. He's doing this all for deals and market understands this," added Chauhan.
On Thursday, Trump ruled out further talks until the tariff dispute is resolved. This followed a move to double tariffs to 50%, citing India's oil imports from Russia.
"India's total exports basket to US is in some ways largely dependent on services, which are not in the play. So, all the IT companies and the services we provide like BPOs and other things, they are not in the play. Only merchandise exports are in the play," Chauhan said while acknowledging that SME companies and medium companies like textiles could face the brunt of the Trump tariffs.
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