Benchmark indices opened on a shaky note Wednesday as investors braced for fallout from US President Donald Trump’s latest tariff threats against India and awaited the outcome of the Reserve Bank of India’s policy decision.
The S&P BSE Sensex was down 65.70 points at 80,644.34 by 9:40 AM, while the NSE Nifty50 slipped 28.40 points to 24,620.
Sentiment was clouded by Trump’s warning of a fresh tariff hike targeting Indian imports of pharmaceuticals and semiconductors, alongside his assertion that India remains an “unfavourable” trade partner.
The rhetoric added to global risk-off cues, especially after a disappointing US ISM Services PMI print, which reflected rising price pressures, surprise job losses, and signs of a broader slowdown in the world’s largest economy.
Prashanth Tapse, Senior Vice President for Research at Mehta Equities Ltd, said the market mood is being shaped by three key negatives: Trump’s tariff salvo, Wall Street’s overnight slide, and the looming uncertainty over RBI’s next move. “The Street is now watching for cues from the central bank’s MPC meeting at 10 AM, with repo at 5.5 percent, CRR at 4 percent, and inflation at multi-year lows. Given GDP growth is sluggish at 6.5 percent, there’s a split view on whether Governor Sanjay Malhotra will go for another cut or hit pause after June’s 50-basis-point reduction. We suspect a pause,” he said.
He added that apart from monetary policy, investors will be closely watching Q1 earnings from companies such as Bajaj Auto, Bharat Forge, Divi’s Labs, GNFC, PFC, Pidilite, PVR Inox, Raymond, RITES, and Trent. Tapse flagged technical weakness in counters such as Aurobindo Pharma, Voltas, BSE, and Havells, and expects continued pressure on the Nifty and Bank Nifty if external cues remain adverse.
Meanwhile, Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the US President’s rhetoric will continue to weigh on the market in the near term.
“India’s response so far has been measured and firm. We are unlikely to concede to unjustifiable demands from the US administration. That, however, means short-term pains are inevitable—exports could dip, GDP growth for FY26 may slip to 6.2 percent from the earlier 6.5 percent projection, and corporate earnings could take a marginal hit. In a market already priced for perfection, corrections are not only possible but perhaps healthy,” he said. He added that today’s monetary policy decision is unlikely to influence market direction meaningfully, given that Trump’s trade stance is now the dominant overhang.
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