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Informist, Tuesday, Aug. 12, 2025

By Simran Rede

MUMBAI – Analysts were unsure about the market direction Wednesday as developments related to import tariffs and the possibility of a trade deal with the US continue to be in focus and have an impact on the market. Additionally, the meeting between US President Donald Trump and his Russian counterpart Vladimir Putin, due Friday, is at the focal point. Analysts await some more clarity on tariffs to predict a direction for the market and expect stock-specific action to lead the market.

On Tuesday, the Nifty 50 closed at 24487.40, down 97.65 points or 0.4%, and the BSE Sensex closed at 80235.59, down 368.49 points or 0.5%. Negative sentiment about higher US tariffs on Indian imports and uncertainty over a trade deal between India and the US have impacted the market. Additionally, the market took a pause after Monday's sharp rally. The resistance for Nifty 50 is pegged at 24750–24800 points and support is pegged at 24400–24350 points, according to Vipin Kumar, assistant vice-president of equity research and senior derivatives analyst at Globe Capital Market. 

Trump signed an order Monday to extend a tariff truce with China by 90 days, just hours before these higher tariffs were due to take effect, media reports cited a White House official as saying. Moreover, Trump has set up a meeting with Putin to discuss ending the war in Ukraine. Trump has said he will try to get some territory back for Ukraine during his meeting, BBC reported. The Indian market is "expecting some positive development over the Russia-Ukraine war during that meeting".    

Analysts expect Trump to also discuss the ongoing tensions related to the export of crude oil to India by Russia. Trump on Tuesday said that the additional 25% US tariffs on Indian goods for the purchase of Russian crude oil has been a "big blow" to Moscow's economy, media reports said. He also linked Russia's economic challenges to the ongoing conflict in Ukraine, according to media reports.

Back home, market participants will also react to India's headline CPI inflation, which fell to 1.55% in July, the lowest print since June 2017, mainly because of the statistical effect of a high base. It is higher than the 1.3% inflation estimated by an Informist poll. This is the third time in the current series that CPI inflation has been below 2%. 

With the June quarter earnings nearing an end, analysts seemed disappointed as most companies missed analysts' expectations and reported weaker earnings for the quarter compared to the March quarter. No positive surprises from the corporate earnings added to the negative sentiment in the market, analysts said. There is hope of earnings improving in the September quarter on the back of the early festival season and a low base in the corresponding quarter of last year. However, they also remain cautious about the jumbo 50-basis-point rate cut by the Reserve Bank of India, which is expected to have put pressure on the margins of banks.

On the pharma front, the US Food and Drug Administration has approved two generic versions of iron sucrose, CNBC-TV18 cited foreign brokerage Citi in an X post. Both these versions are likely to be eligible for 180 days of competitive generic therapy approvals exclusivity. "It's worth waiting to see if more companies announce approvals. No Indian company has announced so far," the post cited the brokerage. The iron sucrose was an important pipeline product for Dr. Reddy's Laboratories and Aurobindo Pharma among Indian generics, the brokerage said. The latest development showed that this product represents a reduced or has lost opportunity now, the brokerage said.
   

Trump had said that he would impose extremely huge 250% tariffs on Indian pharmaceutical products imported to the US. Speaking on this, Sunny Agrawal, head of fundamental equity research at SBICAPS Securities, said "That's posturing, that's not practically possible. And in case, hypothetically, it is implemented...So, pharma companies don't have a choice. They have to pass on those costs to US consumers."  End

Edited by Tanima Banerjee

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