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Key Points

Indian equities opened under pressure as the US implemented 50% tariffs on Indian goods. The Sensex fell 300 points while Nifty dropped 0.27% in early trading. Market expert Ajay Bagga noted that investors who remember post-Pokhran sanctions believe the impact will be absorbed. The market now awaits potential GST cuts and government relief measures for exporters.

Key Points: Sensex Falls 300 Points as US Implements 50% Tariffs on India

  • US implements 50% tariffs on Indian goods effective August 27
  • Nifty opens at 24,899.50 down 68 points
  • All sectoral indices on NSE open in the red
  • Markets await GST Council meeting for potential tax cuts
  • Government expected to provide export relief measures
  • Asian markets also show weakness across the region
3 min read

Sensex lost 300 points, Nifty down quarter per cent US goes ahead with 50% tariff implementation

Indian markets open lower as US imposes 50% tariffs on goods. Nifty down 0.27%, Sensex drops 300 points. Experts expect government relief measures.

"Those old enough to have seen the post-Pokhran II sanctions on India are convinced the impact of these will be absorbed. - Ajay Bagga"

Mumbai, August 26

Domestic equities opened under pressure on Tuesday as the United States Customs Department went ahead with the decision to impose 50 per cent tariffs on Indian goods and published a draft notice.

The new tariffs will come into effect from August 27.

Though investors had largely factored in the possibility of such steep tariffs, there was hope in the market for a delay or back-channel relief. With the announcement now making the tariffs a reality, investor sentiment weakened in early trade.

The Nifty 50 index opened at 24,899.50, slipping by 68.25 points or 0.27 per cent, while the BSE Sensex started at 81,377.39, down 258.52 points or 0.32 per cent.

Ajay Bagga, Banking and Market Expert, told ANI that investors remain on edge with the secondary tariffs due to be implemented in the US from 12.01 a.m. on August 27.

"Those old enough to have seen the post-Pokhran II sanctions on India are convinced the impact of these will be absorbed. The government is expected to provide relief measures to affected exporters while boosting consumption via GST cuts," he said.

He further added that the government would need to step up export promotion measures and inject a stimulus to support domestic consumers, especially to make up for the expected shortfall from the loss of nearly USD 48 billion of Indian exports to the US.

Market participants are now awaiting the upcoming GST Council meeting scheduled for September 3 and 4. Tax cuts are expected to be announced, likely coming into effect by the end of September, in time for the festive season of Navratri and Diwali.

Experts believe such steps could provide the much-needed boost to consumption and offset the export hit.Broader indices also showed weakness, with the Nifty 100 down by 0.25 per cent, Nifty Midcap 100 lower by 0.33 per cent, and Nifty Small Cap losing 0.12 per cent.

All sectoral indices on the NSE opened in the red. Nifty Auto was down 0.11 per cent, Nifty IT lost 0.48 per cent, Nifty Media declined 0.19 per cent, Nifty Pharma slipped 0.32 per cent, and Nifty Private Bank was down 0.19 per cent. The impact of tariffs was visible across the board.

Meanwhile, Indian markets will remain closed on Wednesday on account of the Ganpati festival.

In other Asian markets, the trend also remained weak. Japan's Nikkei 225 index slipped more than 1.2 per cent, Singapore's Straits Times fell 0.24 per cent, Hong Kong's Hang Seng declined 0.15 per cent, Taiwan's Weighted Index lost 0.19 per cent, and South Korea's KOSPI dropped 0.9 per cent.

- ANI

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Reader Comments

P
Priya S
Timing couldn't be worse with festive season approaching. Need GST cuts to boost domestic consumption and compensate for export losses. Diwali shopping might get affected otherwise.
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Arjun K
We survived Pokhran sanctions, we'll survive this too. Indian economy has become much stronger since then. This is temporary turbulence.
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Sarah B
As an NRI investor, I'm watching this closely. The market dip might actually present some buying opportunities for long-term investors. Indian growth story remains intact.
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Vikram M
IT and Pharma sectors taking the biggest hit. These are our major export sectors to US. Government needs to provide immediate support to these industries.
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Nikhil C
While the situation is challenging, I appreciate that markets are closed tomorrow for Ganpati festival. Gives everyone time to reflect and come back with fresh perspective.
M
Michael C
The silver lining is that other Asian markets are also down. This isn't India-specific weakness. Global trade tensions affecting everyone.
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