BRICS Tariff Threat Bullies Indian Stock Market amid Trading Uncertainty

Indian markets opened cautiously as traders braced for potential U.S. tariffs on BRICS nations, sparking concerns of global trade impacts. U.S. President Trump's protectionist stance has kept investors vigilant, with market-moving events expected around the Feb 1 Union Budget and the looming tariff threats.

Indian stock markets commenced trading on a tentative note Friday, amid looming fears regarding U.S. tariffs targeting BRICS nations. Despite the cautious sentiment, the Nifty 50 index saw a mild 0.2% uptick, while the BSE Sensex gained 0.17%, reflecting investors' mixed sentiments.

Market observers are on edge as uncertainty surrounds a potential February 1 announcement from the Trump administration regarding tariffs. Market expert Ajay Bagga noted that any protectionist measures could significantly impact global economic parameters like trade balances and inflation. However, a delay in the tariff announcement may bolster risk appetite among investors.

U.S. President Donald Trump intensified concerns through a social media declaration, promising 100% tariffs on BRICS nations if they attempt to replace the U.S. Dollar. His statements have put pressure on various sectoral indices, with banking, realty, and oil shares bearing the brunt.

Traders observed technical indicators as the market showed resilience amid challenges. Despite a recent streak of gains, experts like Akshay Chinchalkar from Axis Securities highlighted potential resistance and support levels that could influence future market directions.

In the broader Asian landscape, stocks showed mixed outcomes with Singapore's Straits Times Index surging, contrasting with South Korea's underperformance. The investment community also awaits key earnings reports from major Indian firms across diverse sectors.

(With inputs from agencies.)