31-07-2025
Stocks markets down as Trump tariffs take toll
Both NSE Nifty 50 and BSE Sensex traded lower this morning as investor sentiment was down thanks to imposition of US tariff of a minimum 25 per cent on India.
The other reason being July 31 is the last Futures Expiry Day.
Talking to The Hans India, Arun Kejriwal, a capital market expert, says, 'The impact of Trump imposing 25 per cent reciprocal tariff on India across product categories and also an undisclosed fine and penalty for importing energy and arms from Russia has led to this sharp correction.'
Today also happens to be July Futures expiry which has led to the more uncertainty into the market, he said.
While a 25 per cent tariff imposed by the US on Indian exports certainly disrupts vital sectors and presents immediate challenges for India's economy, it is improbable that it will significantly alter the country's long-term growth path. India's growth narrative is supported by solid fundamentals such as a growing domestic market, vibrant entrepreneurial spirit, and increasing international partnerships.
Additionally, elevated tariffs ultimately raise expenses for consumers and businesses in the US, rendering these measures impractical over time. Both countries have a shared interest in preserving advantageous trade relations, increasing the chances that tariff policies will be revised or eased in the future.
Rajesh Palviya, SVP - Research, Axis Securities says, 'As market conditions and consumer demands evolve, both parties may be inclined towards negotiation and collaboration, which could mitigate any lasting effects of temporary tariff increases.'
