The Indian markets opened trading today among heavy volatility. The BSE Sensex began the session under 81,500, falling over 200 points, while the NSE Nifty50 took a hit of more than 50 points and tested 24,900, as of 9:15 AM.
Markets remained anxious on Tuesday morning as the US confirmed the implementation of secondary tariffs on India. The GIFT Nifty slipped 29 points and stood just above 24,900, around 8:39 AM. In the pre-open session, the Sensex plunged more than 300 points to breach 81,300, while the Nifty fell over 70 points to stand at 24,889.
US’ Secondary Tariffs On India
The United States confirmed a 25 per cent additional tariff on imports from India, effective from 12:01 AM EST on August 27, according to a notification by the Department of Homeland Security via US Customs and Border Protection (CBP).
The levy, authorised under Executive Order 14329 signed by President Donald Trump on August 6, will impact a broad range of goods listed in the official annex. It will apply not only to new consignments but also to shipments cleared from bonded warehouses after the effective date.
Officials indicated the move aligns with Washington’s strategy to step up economic pressure on Russia amid the ongoing conflict in Ukraine.
How Did Markets Behave On August 25?
Indian equities started the week on a positive note as the Sensex jumped 329 points on Monday, supported by strong buying in IT and auto stocks alongside upbeat global cues. The Sensex ended at 81,635.91, up 0.40 per cent, after touching an intraday high of 81,799.06. Meanwhile, Nifty closed at 24,967.75, gaining 97.65 points or 0.39 per cent.
Investor sentiment improved after comments from the US Federal Reserve hinted at a potential rate cut in September, triggering optimism across global markets. Vinod Nair of Geojit Financial Services said the IT index outperformed due to “favourable global sentiment.”
Asian markets also ended higher, with gains in Japan’s Nikkei, South Korea’s Kospi and Hong Kong’s Hang Seng, though European markets traded in the red. US stocks had closed sharply higher on Friday, with the Dow Jones and Nasdaq rising nearly 1.9 per cent each.
