Indian benchmark indices, Sensex and Nifty 50, are likely to open lower on Thursday following US President Donald Trump’s announcement of a 25% tariff on Indian goods, effective August 1.
Asian markets showed mixed trends, while US markets closed mostly in the red after the Federal Reserve policy announcement and comments by Chair Jerome Powell.
Following Powell’s remarks, market expectations for a rate cut by the Fed in September dropped below 50%, as per LSEG data.
The Gift Nifty hovered around 24,669, nearly 200 points below the Nifty futures’ previous close, suggesting a gap-down opening for Indian benchmark indices.
Asian markets were mixed on Thursday, mirroring Wall Street’s volatile performance post-Fed announcement, while investors awaited the Bank of Japan’s policy outcome.
Japan’s Nikkei 225 advanced 0.55% and the Topix gained 0.28%. South Korea’s Kospi rose 0.41%, while the Kosdaq remained flat. Hong Kong’s Hang Seng futures pointed to a weak start.
US markets ended mixed on Wednesday following the Federal Reserve’s decision to hold interest rates steady and comments from Chair Jerome Powell that reduced the likelihood of a September rate cut.
In stock-specific action:
US President Donald Trump has imposed a 25% tariff on Indian imports effective August 1, citing India’s high trade barriers. An additional penalty will be levied due to India’s continued energy and defence relations with Russia, according to a post by Trump on Truth Social.
The US Federal Reserve held interest rates steady for the fifth straight time, keeping the range at 4.25% to 4.5%. Despite strong labour market data and low unemployment, inflation remains “somewhat elevated.” Fed Chair Powell’s remarks dampened hopes for a rate cut in September.
The Indian stock market continued its upward momentum for the second straight session on Wednesday, with the Nifty 50 closing above the 24,800 mark.
The Sensex climbed 143.91 points (0.18%) to settle at 81,481.86, while the Nifty 50 ended 33.95 points (0.14%) higher at 24,855.05.
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Overall, market sentiment remains cautious amid global uncertainties. The announcement of fresh US tariffs on Indian goods and the Federal Reserve's hawkish stance have dampened investor confidence, potentially leading to a weak start for Indian indices.
With Gift Nifty indicating a gap-down opening and mixed cues from Asian markets, traders may adopt a wait-and-watch approach.
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: Jul 31, 2025, 8:12 AM IST
Nikitha Devi
Nikitha is a content creator with 7+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.
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