Trump rules out trade talks with India amid tariffs: Will Dalal Street face the heat?
There are reports that the Kremlin has confirmed a proposed meeting between Trump and Russian President Vladamir Putin next week.Analysts believe the meeting could mark a potential turning point in the Russia-Ukraine conflict and lead to a softening of Washington's stance on countries like India that continue to import Russian crude.It may be noted that the extra 25% tariff on Indian exports kicks in on August 27, leaving a 21-day window of high-stakes diplomacy and volatile market speculation.FIIS SELL OFF, DIIS STEP INHowever, Trump's tariff escalation has added fuel to an already extended sell-off by foreign portfolio investors (FPIs). Thursday marked the 14th consecutive session of FII outflows, with Rs 49.97 billion ($571 million) worth of stocks offloaded in a single day. On August 7 alone, FIIs sold equities worth Rs 4,997 crore.In July, total FPI outflows crossed $4.17 billion, with IT and globally exposed companies taking the biggest hit.In contrast, domestic institutional investors (DIIs) have stepped in aggressively. On Thursday, they net purchased Rs 10,864 crore in equities—their strongest single-day buying in four months—extending their buying streak to 24 straight sessions. DII flows have helped stabilise markets and absorb external shocks, even as global sentiment remains jittery.MSCI SHUFFLE IMPACTMoreover, the latest reshuffle in the MSCI India Standard Index has added another layer of market action. Swiggy, Vishal Mega Mart, Waaree Energies, and Hitachi Energy India are set to join the index from August 26, triggering passive inflows as global funds rebalance their holdings.On the other hand, Sona BLW Precision Forgings and Thermax will be excluded—potentially prompting passive outflows from these counters.Expect these stocks to remain in sharp focus today and throughout the month.RBI'S RATE DECISIONIn contrast to global market turbulence, the Reserve Bank of India maintained a steady hand. It left the benchmark repo rate unchanged at 5.5%, with a neutral stance, signalling confidence in India's macro fundamentals. The RBI forecast GDP growth at 6.5% and FY26 inflation at 3.1%, offering some comfort to investors rattled by external shocks.However, the rupee's continued depreciation—trading near 87.5 to the dollar—remains a concern, especially amid sustained FII withdrawals and persistent dollar strength.WHAT TO EXPECT TODAY?advertisementAccording to Amruta Shinde, Technical & Derivative Analyst at Choice Broking, Indian benchmark indices are expected to open on a flat to negative note, as Gift Nifty indicates a mild 31-point drop.'Market sentiment remains cautiously optimistic but dampened by persistent volatility and mixed global cues,' she says.Given the uncertain and elevated volatility in the current market, Shinde advises a 'cautious wait-and-watch stance,' particularly for leveraged traders. Booking partial profits on rallies and using tight trailing stop-losses is advised, with fresh long positions to be considered only above 24,750.Prashanth Tapse, Senior VP (Research) at Mehta Equities, echoes similar caution. 'Multiple triggers—US tariff escalation, weak Q1 earnings, FII selling, and rupee pressure—are keeping markets nervous,' he says. 'But as long as the Nifty holds the key support at 24,344, buying on dips could remain the theme.'- EndsTune InMust Watch
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ED Seeks 7-year Imprisonment For Robert Vadra In Gurugram Land Deal Case
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