The Gift Nifty declined 96.50 points, or 0.39%, to 24,784.50 as of 22:07 IST on Wednesday amid cautious global sentiment following US President Donald Trump’s announcement of an additional 25 percent tariff on Indian imports bringing tariffs to around 50 percent. Over the last one week, the Gift Nifty has fallen around 0.8 percent.
Asian and European markets closed mostly higher earlier in the day and the US market has been trading mostly in the green.
Trump on Wednesday signed an executive order sharply increasing tariffs on imports from India, raising the rate by another 25 percent to 50 percent. The order, which takes effect August 27, was issued in response to what Trump described as India’s “unfair trade practices” and continued purchases of Russian oil.
In a statement on social media platform X ( formerly Twitter), the Ministry of External Affairs said, "The United States has in recent days targeted India's oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India."
They added that it was extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest. "We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests," it added.
On market impact on Thursday, Dhiraj Relli, MD & CEO, HDFC Securities said, "We expect the markets to fall by 1-2% in knee-jerk reaction, but most would expect a resolution of the same. Impact on GDP will be around 30-40 bps if these tariffs are sustained for a year."
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