Indian stock markets opened lower on Tuesday after the US announced 50% tariffs on Indian goods, effective from August 27.
- The Nifty50 index slipped below 24,800, trading at 24,794.30, down 173 points (0.69%) at 10:05 AM.
- The BSE Sensex fell by more than 600 points, standing at 81,073.59, down 562 points (0.69%).
Why did the market fall?
The fall came after the Donald Trump administration confirmed the additional tariffs. Experts believe this could impact some sectors, so traders may need to adjust their strategies.
Expert opinion
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said:
- The Indian market is expensive compared to others but has stayed strong because of high liquidity.
- While foreign investors (FIIs) are selling, domestic investors (DIIs) are buying heavily, which is keeping the market stable.
- He advised investors to be careful with overvalued small-cap stocks and focus more on large-cap companies that are fairly priced.
Global market cues
- US markets closed lower on Monday as investors worried about interest rates and awaited Nvidia’s earnings report later this week.
- Gold prices touched a two-week high after President Trump removed US Federal Reserve Governor Lisa Cook, citing mortgage fraud allegations.
- The US dollar weakened in early Asian trade following this decision.
- Oil prices slipped on Tuesday after rising nearly 2% in the previous session, as traders tracked the Russia-Ukraine conflict for possible supply issues.
FII & DII activity
- Foreign investors (FIIs) sold Indian shares worth ₹2,466 crore on Monday.
- Domestic investors (DIIs), however, bought shares worth ₹3,177 crore, supporting the market.
