Market Opens in Red Amid Tariff Announcements

Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, opened in red on Friday as India braces for 25% tariff rate on its exports to the US. While Nifty50 went below 24,750, BSE Sensex was down over 100 points. At 9:16 AM, Nifty50 was trading at 24,727.45, down 41 points or 0.17%. BSE Sensex was at 81,047.39, down 138 points or 0.17%.

Analysts Weigh In on Market Trends

Market analysts indicate that Nifty's underlying short-term trend remains positive despite high volatility. Analysts suggest maintaining caution and adopting a hedged strategy due to expected market fluctuations.

Global Impact of Trump's Tariffs

US President Donald Trump has signed an executive order announcing tariffs on 69 countries (including EU) which will be effective August 7, 2025. India is also a part of the list. Trump's earlier deadline for reciprocal tariffs was August 1.

Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, "The August series starts on a weak note after the 3.1% dip in Nifty in July. In the near-term the market will be influenced by the tariff-related news. Since the date of implementation of the modified tariff rates is August 7th, that gives countries time to negotiate and bring the tariffs down."

Investor Sentiment and Future Outlook

"An important trend in the market is the weakness in the broader market, particularly the smallcaps. This trend is likely to continue given the high valuations of the segment. Sustained selling by the FIIs continues to be a negative. The sharp surge in the dollar index to 100 will nudge the FIIs to continue selling putting pressure on largecaps too. Investors can adopt a wait and watch strategy."

Global Market Reactions

US equities declined on Thursday as initial gains diminished following corporate earnings reports and economic data releases, with investors awaiting post-market results from Amazon and Apple.

Asian equities dropped for six consecutive sessions, marking the longest downward trend in 2025, following President Donald Trump's tariff announcement, despite strong performance from large technology companies failing to boost overall market confidence.

Oil Prices and Investor Moves

Oil prices remained stable on Friday, following a decline exceeding 1% in the previous trading session, as market participants evaluated the consequences of increased US tariffs potentially affecting economic activities and global fuel consumption growth.

Foreign portfolio investors sold shares worth Rs 5,588 crore net on Thursday. Domestic institutional investors purchased Rs 6,373 crore net.

Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India