Markets Slip as Trump’s Tariff Warning Over Russian Oil Jolts Investor Sentiment.
Indian stock markets opened lower on Tuesday after former US President Donald Trump threatened steep new tariffs on India over its ongoing oil trade with Russia, raising fresh concerns about global trade friction. The BSE Sensex dropped 156.96 points to 80,861.76, while the NSE Nifty50 fell 30.80 points to 24,691.95 in early trade. Broader indices also mirrored the cautious mood, as geopolitical tensions rattled Dalal Street.
Among Nifty50 stocks, IndusInd Bank, Jio Financial, Maruti, SBI, and Ultratech Cement posted early gains. In contrast, HDFC Bank, BEL, Reliance, Nestle, and Infosys led the losses. Prashanth Tapse of Mehta Equities predicted a “subdued to weak” session, warning that the Nifty may remain under pressure below the 25,000 mark. “If the index closes below 24,473, downside risks could intensify,” he added.
Trump’s warning—threatening to impose heavy tariffs if India doesn’t cut Russian oil imports—has unsettled investors, just as markets were nearing all-time highs. India, however, swiftly responded, rejecting the threat as “unjustified and unreasonable.” Dr VK Vijayakumar of Geojit Financial Services said the tariff talk adds significant uncertainty. “If implemented, it could hurt India’s exports to the US, dent GDP growth, and squeeze corporate earnings in FY26,” he warned.
He also noted that markets haven’t priced in such a geopolitical shock, and with valuations already stretched, the downside could be sharper if key support levels are breached. He advised investors to consider hedging through fixed-income instruments.
The government, meanwhile, is expected to hold firm on its energy policy, indicating it won’t bow to pressure over Russian crude purchases—setting the stage for a possible showdown with Washington.
Comments are closed.