Sensex, Nifty slip amid new Trump tariff threat; all eyes on RBI MPC meet

New Delhi: The Indian equities witnessed a subdued opening session on Tuesday amid fresh threat from the US President Donald Trump to impose higher tariffs on India over Russian oil purchase.

Sensex declined 199 points or 0.25 per cent to 80,819 (as of 9.30 am). The Nifty slipped 44.05 points or 0.18 per cent to 24,678.70.

Nifty midcap 100 index was down 0.17 per cent and Nifty smallcap 100 index was up 0.19 per cent.

Among the sectoral indices, Nifty FMCG was the biggest loser down 0.55 per cent. The Nifty Bank fell 0.12 per cent and the Nifty IT index slipped 0.25 per cent.

“On the technical front, Nifty breaking above the high of 24,956 can reverse the short-term downtrend, but until then, bears have the upper hand,” said Vikram Kasat, Head – Advisory, PL Capital.

Nifty’s immediate support zones are 24,550 and 24,442, with resistance zones at 24,900 and 25,000. If it holds above the 24,600 zone, a bounce can be expected towards 24,900 and 25,000 zones, while supports can be found at 24,550 and 24,442,” he added.

Investors may wait and watch for the developments to unfold. Moving some money to fixed income also can be thought of, suggested analysts.

Strong domestic economic data and optimism ahead of the RBI’s credit policy meeting of a 25 bps rate cut could provide an upside to the market, they added.

However concerns remain after reports that US President Donald Trump has threatened to increase tariffs on India over its oil purchases from Russia, which could weigh on market sentiment.

In the Nifty pack, Coal India, Maruti Suzuki, SBI, and Dr. Reddy’s Laboratories were top gainers. HDFC Bank, Reliance Industries, Hindustan Unilever (HUL), ICICI Bank, and Tata Consumer Products were among the top laggards.

US markets rebounded sharply overnight, as the Dow Jones climbed 1.34 per cent, the Nasdaq Composite surged 1.95 per cent, and the S&P 500 rose 1.47 per cent.

“Bulls are increasingly confident that US Federal Reserve will have to cut interest rates in September. The odds of a September interest-rate cut jumped to 92.1 per cent, from under 40 per cent Friday morning, ahead of the July employment report,” Kasat said.

Asian markets also opened on a firm note. South Korea’s Kospi 200 surged 1.09 per cent. China’s Shanghai Composite gained 0.52 per cent, Japan’s Nikkei 225 rose 0.63 per cent, and Hong Kong’s Hang Seng Index edged up 0.14 per cent.

On Monday, foreign portfolio investors (FPIs) were net sellers to the tune of Rs 2,566 crore worth of Indian equities, while domestic institutional investors (DIIs) net bought Rs 4,386 crore worth of shares.

—IANS