Indian stock markets are likely to open with limited downside today, as the initial panic from a surprise US tariff announcement eased in early trade.
Gift Nifty, which had opened nearly 90 points down, recovered to trade 38 points lower, before settling 63 points down at 7:57 AM IST. The partial rebound indicates a measured reaction from investors amid overnight geopolitical developments.
The weakness was triggered by a White House order issued Tuesday evening, which imposed an additional 25% tariff on imports from India, effective August 27. The order cited India’s continued direct or indirect import of Russian Federation oil as the reason, linking it to the ongoing national emergency declared over Russia’s actions in Ukraine.
However, the sharp drop was contained—possibly due to early diplomatic signals from former US President Donald Trump, who posted on social media that his Special Envoy, Steve Witkoff, held a “highly productive” meeting with Russian President Vladimir Putin. Trump called it “great progress,” and noted that European allies were briefed on the outcome, with consensus emerging that “this war must come to a close.”
While Trump’s statements are unofficial and hold no current policy authority, the timing of the post—following the tariff order—offered markets a semblance of diplomatic hope, helping limit downside in Gift Nifty.
Markets will now await clarity on India’s response to the tariff move and any further geopolitical developments through the week.
Disclaimer: This article is for informational purposes only. It is based solely on public and media inputs provided and does not constitute investment advice or a recommendation of any kind.
