Trump's Tariff Remarks Trigger Turmoil in Indian Stock Markets

Indian stock markets plummeted after President Trump's comments on potential tariffs on rice imports, overshadowing hopes from a visiting US trade delegation. Market indices fell sharply, with heavy selling observed across sectors. Experts note markets are oversold, awaiting positive triggers amidst global economic uncertainties.

On Tuesday, Indian stock markets experienced significant declines as investors reacted to US President Donald Trump's latest comments regarding potential new tariffs on rice imports. The President's remarks overshadowed the ongoing visit of a US trade delegation to India, adding to the market's instability and dampening any optimism for relief.

The benchmark Nifty 50 index opened at 25,867.10, down 93.45 points, marking a 0.36% decrease. Meanwhile, the BSE Sensex fell by 359.82 points to 84,742.87, a 0.42% dip. Financial analysts highlighted the markets' current oversold status, suggesting they could quickly rebound with any positive developments.

Ajay Bagga, a banking and market expert, explained that Trump's tariff discussions, particularly targeting Indian rice exports, have negated any expected relief from the US trade delegation's visit. He pointed out continued foreign portfolio investment outflows and FPI net short positions at 88%, exacerbating liquidity challenges.

Trump made these tariff-related comments at the White House, announcing a USD 12 billion aid package for US farmers, citing challenges posed by imports. This broad pressure led to widespread declines in indices, including Nifty 100, Midcap, and Smallcap, reflecting a market-wide sell-off.

Sectoral indices also showed weakness, with Nifty Media, Metal, and IT recording losses over 1%. Nifty Auto declined by 0.77%, Pharma by 0.44%, and PSU Bank by 0.72%. Ponmudi R, CEO of Enrich Money, described the Indian markets' cautious consolidation phase as they remain above the critical support level of 25,850 ahead of the Federal Reserve's policy decision.

In Asian markets, Japan's Nikkei 225 was the notable exception, rising 0.35%, while other major indices like Hong Kong's Hang Seng and South Korea's KOSPI experienced declines, reflecting regional market fragility. (ANI)

(With inputs from agencies.)