Indian stock markets opened on a weak note on Thursday, reacting to U.S. President Donald Trump’s announcement of a fresh 25% tariff on select Indian exports. The move, attributed to India’s continued imports of Russian oil, has triggered worries across Dalal Street.
At 9:22 am, the Sensex was down 131 points at 80,412.94, while the Nifty50 dropped 67 points to 24,506.95. Markets showed signs of high volatility, with experts expecting wild swings through the day.
According to Dr. VK Vijayakumar of Geojit Financial Services, the 21-day window before the tariff comes into effect could allow time for negotiation. However, he warned of high uncertainty and added that export-driven sectors may stay under pressure. He sees resilience in domestic sectors like banking, telecom, hotels, cement, capital goods, and parts of the auto industry.
Santosh Meena of Swastika Investmart said the move wasn’t unexpected, as Trump had hinted at it earlier. He termed it a part of Trump’s aggressive trade strategy, noting that India has so far shown firm resistance, especially in sectors like agriculture and dairy. Meena believes India’s domestic consumption-driven economy offers some protection, though textiles, gems & jewellery, and leather might suffer sentiment-driven losses.
For long-term investors, Meena advises a steady hand. “India’s long-term story remains strong,” he said, suggesting that any dip could be seen as a buying opportunity. For short-term traders, however, he recommends a defensive, selective strategy due to market uncertainty and muted Q1 earnings.
Prashanth Tapse of Mehta Equities struck a bearish tone, citing headwinds like FII outflows, rupee weakness, a hawkish RBI stance, and technical weakness in the Nifty. He noted that support levels at 24,473 and 24,046 will be closely watched.
With global tensions rising and economic signals mixed, experts suggest that investors remain cautious, focusing on domestic themes while steering clear of export-sensitive stocks in the near term.
