Mumbai, August 1, 2025: Indian stock markets opened in negative territory on Friday, rattled by news of a new executive order signed by U.S. President Donald Trump imposing a 25% tariff on Indian imports, effective August 7. The BSE Sensex dropped 450 points to 81,450, while the NSE Nifty fell 130 points to 24,880, reflecting investor concerns over the potential economic fallout.
The tariff, aimed at addressing trade imbalances, is expected to hit key Indian export sectors like pharmaceuticals, textiles, and IT services. Analysts warn of rising costs for Indian companies reliant on U.S. markets, potentially squeezing profit margins and dampening economic growth. “This move could disrupt India’s trade dynamics and spark retaliatory measures,” said Ankit Sharma, chief market strategist at Capital Advisors.
Global cues also weighed on sentiment, with U.S. markets closing lower overnight amid fears of escalating trade tensions. Sectoral indices, including auto, IT, and banking, saw sharp declines, with major losers including Infosys, TCS, and HDFC Bank. However, select pharma stocks showed resilience, buoyed by domestic demand.
Market participants are now eyeing India’s response to the tariff and upcoming economic data for further direction. “Investors should brace for volatility as trade negotiations unfold,” Sharma added.
