Indian equity markets may open on a cautious note on August 7, 2025, as suggested by Gift Nifty futures, which were trading marginally higher at 24,558, up 21.50 points or 0.09% around 8:00 AM.
The modest uptick comes amid geopolitical uncertainties and fresh tariff pressures announced by the United States.
Market attention turned sharply toward international trade developments after US President Donald Trump announced an additional 25% tariff on Indian exports, citing India’s continued crude oil imports from Russia.
This raises the total tariff burden on Indian exports to 50%, severely impacting India’s competitiveness in the US market especially when compared to global peers like China.
The announcement has heightened fears of a renewed trade standoff, just as markets were beginning to stabilise from previous geopolitical shocks.
Equities across the Asia-Pacific region reflected mixed sentiment following Trump's broader tariff threats. The US President vowed to impose 100% tariffs on imported semiconductors and chips, although domestic manufacturers within the US would be exempt.
This uneven regional performance underscores the nervousness among global investors reacting to shifting US trade policy.
On August 6, domestic benchmarks continued their downward slide. The Nifty 50 fell 75.35 points or 0.31% to close at 24,574.20, while the BSE Sensex slipped 166.26 points or 0.21%, ending the session at 80,543.99.
Investor sentiment was weighed down by renewed global trade worries and the potential implications for Indian exports.
Despite tariff headlines, US markets closed in positive territory overnight. Major indices advanced, supported by robust corporate earnings, which helped offset macroeconomic uncertainties. US bond yields also rose, reflecting investor expectations for continued economic strength.
This divergence between geopolitical risk and corporate performance is adding complexity to the global market outlook.
Read More: Pidilite Share Price Rises as Board Approves 1:1 Bonus Issue, ₹10 Special Dividend.
As Indian markets brace for the August 7 session, investors are likely to remain wary of trade headlines and global cues. While Gift Nifty suggests a stable open, sentiment may remain fragile due to the potential economic fallout from the US tariff escalation. Traders will also keep an eye on regional performance and global earnings momentum as the week unfolds.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Aug 7, 2025, 8:41 AM IST
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