Sensex Plunges 500 Points, Nifty Slips as Trump’s Tariff Hits Market
Benchmark Indian stock market indices opened with significant losses on Thursday, as investor sentiment was soured by US President Donald Trump’s announcement of a 25% tariff on Indian imports. The news triggered a broad-based sell-off, with heavyweight stocks leading the decline.
As of 9:26 am, the S&P BSE Sensex was trading 536.92 points lower at 80,944.94, while the NSE Nifty50 had fallen by 156.35 points to 24,698.70. The market’s negative reaction was swift, reflecting immediate concerns over the impact of the tariffs on the Indian economy. Among the major losers in early trade were frontline stocks like Reliance Industries, which dropped 1.47%, Bharti Airtel, down 1.46%, and ICICI Bank, which fell 0.84%.
Market experts described the development as a significant headwind for the economy in the short term. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the 25% tariff, along with an unspecified penalty for India’s energy and defense purchases from Russia, is “very bad news for Indian exports and thereby on the growth prospects of the Indian economy in the short run.” He added that this negative impact would be reflected in the stock market.
Despite the downturn, some analysts believe the tariff rate may be a negotiating tactic. “This is the typical Trumpian strategy to get better deals from India in other areas and finally settle at a tariff rate around 20% or less,” Vijayakumar noted, suggesting that the initial 25% figure might come down after talks resume in mid-August. He advised that the Nifty is unlikely to breach its support level of 24,500 and suggested that investors could “buy the dip,” focusing on domestic consumption-driven sectors like private banking, capital goods, and cement.
