Equity Alert
US' new tariff threat to India likely to cap near-term gains
This story was originally published at 08:22 IST on 5 August 2025
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Equity Alert: US' new tariff threat to India likely to cap near-term gains
MUMBAI--0812 IST--US President Donald Trump's new tariff threats on India are likely to limit gains in the domestic equity market in the near term. This is likely to put pressure on corporate earnings and pose some impact on the country's economy, with the US increasingly putting pressure on India for importing crude oil from Russia. However, experts believe India is relatively insulated from the direct risk of US tariffs and may continue to perform better than most emerging markets in the long term.
"Indian corporates with significant exposure to the US will have to either re-orient to new markets or absorb some tariff increases in the short term to sustain volumes, given the relative disadvantage compared to other markets namely Vietnam, Indonesia, Thailand and Bangladesh", Rakesh Valecha, senior director of core analytical group at India Ratings & Research, said in a note.
Trump Monday threatened that he would "substantially" raise tariffs on Indian goods being shipped to the US due to its continued energy procurement from Russia. This will be in addition to the 25% tariff and an additional penalty Trump had announced last week. "India is not only buying massive amounts of Russian Oil, they are then, for much of the oil purchased, selling it on the open market for big profits."
The domestic equity market partially recovered losses caused by Trump's tariff threats last week. On Monday, the Nifty 50 closed 0.6% higher at 24722.75 points and the BSE Sensex ended 0.5% higher at 81018.72 points. The near-term support for the 50-stock index is pegged at 24500-24450 points and resistance at 24850-24900 points, according to a senior technical and derivatives analyst at a domestic broking firm. At 0734 IST, the GIFT Nifty August futures contract was 0.2% higher at 24755 points, which is around 32 points higher than the Nifty 50's spot level. (Anjana Therese Antony)
Equity Alert: Asian mkts rise tracking overnight gains in US; Kospi up 1.5%
MUMBAI--0748 IST--All Asian indices rose in early trade Tuesday, tracking overnight gains in the US indices. Investors across the region assessed US President Donald Trump's threats of a higher tariff on India due to the latter buying "massive amount" of crude oil from Russia.
South Korea's Kospi was up 1.5%. The country's consumer prices rose 2.1% on year in July, slightly slower than the rise of 2.2% in June. On a month-on-month basis, the consumer price index rose 0.2%, the fastest in four months, after no change in the previous month. Samsung SDI, Samsung Heavy Industries, and EcoPro BM were up 5-11% in the early session.
Japan's Nikkei 225 and Topix were up 0.5% and 0.7%, respectively, after a sharp sell-off in the previous session. Mitsubishi Heavy Industries surged over 4?ter it won a A$10 billion ($6.5 billion) deal from the Australian Navy to build 11 new frigates.
Among others, Australia's S&P/ASX 200 was up 1.1%. Northern Star Resources, REA Group, and WiseTech Global rose around 2?ch.
Following are the levels of key Asian indices at 0742 IST:
|
INDEX |
LEVEL |
CHANGE IN % |
|
CSI 300 Index |
4081.2294 |
0.26 |
|
Hang Seng Index |
24727.09 |
(-)0.03 |
|
Nikkei 225 Day |
40505.48 |
0.53 |
|
TOPIX FIRST SECTION |
2935.94 |
0.68 |
|
KOSPI |
3194.28 |
1.48 |
|
FTSE Singapore Straits Times |
4216.24 |
0.45 |
|
S&P/ASX 200 Index |
8757.40 |
1.08 |
(Akash Mandal)
Equity Alert: US mkt surges; weak econ data reignites Sept rate cut hopes
MUMBAI--0727 IST--US indices surged Monday as investors looked for bargains after a sharp sell-off Friday. All three indices posted their biggest daily gain since May 27 as hope of a rate-cut in September were boosted amid weak economic data. The S&P 500 snapped a four-session losing run in the process and the Dow Jones Industrial Average ended a five-session losing streak. Both the indices ended over 1% higher. The Nasdaq Composite closed nearly 2% higher.
Shares of Tesla rose 2?ter the electric vehicle maker granted Chief Executive Officer Elon Musk 96 million shares worth about $29 billion in a new pay deal to keep him at the helm, Reuters reported. "Today is just a little bit of dip-buying...it does show a pretty healthy sign of folks out there looking for an opportunity to get in," Reuters reported Mike Dickson, head of research and quantitative strategies at Horizon Investments, as saying. Joby Aviation soared 19?ter the company said it will acquire helicopter ride-share company Blade Air Mobility's passenger business for up to $125 million. Blade Air shares rose 17.2%.
On the trade front, US President Donald Trump Monday said he will substantially raise tariffs on goods from India over its Russian oil purchases. Investors also still digested US President Donald Trump's firing of Bureau of Labor Statistics Commissioner Erika McEntarfer Friday after he accused her of faking the weak jobs numbers.
Post the weak jobs data Friday, which had triggered a sharp selloff in equities across the world, the CME Fedwatch tool now shows an over 90% probability of a 25-basis-point rate cut in the US Federal Reserve's September meeting, compared with a 64% probability a week ago and an 80% probability on Aug. 1.
Following are the closing levels of US indices Monday:
| INDEX | LAST LEVEL | CHANGE IN % |
| Dow Jones Industrial Average | 44173.64 | 1.34 |
| NASDAQ Composite | 21053.582 | 1.95 |
| S&P 500 | 6329.94 | 1.47 |
(Akash Mandal)
End
Edited by Akul Nishant Akhoury
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