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Benchmarks trade in red with caution amid US tariff concerns
Aug-08-2025

Indian equity benchmarks made a negative start on Friday and are trading in red with caution after US President Donald Trump said there will be no trade talks with India till issues are resolved. The statement comes a day after Trump announced an additional tariff of 25% on Indian exports, bringing the total to 50%. Meanwhile, Dammu Ravi, Secretary (Economic Relations), Ministry of External Affairs said that India is exploring new markets for its exports - both goods and services - as a diversification strategy amid the United States' decision to levy high tariffs on Indian exports. Foreign fund outflows also dented sentiments. Foreign Portfolio Investors (FPIs) were net sellers of Indian shares to the tune of Rs 4,997 crore on Thursday.

On the global front, Asian markets are trading mixed, following the mixed cues from Wall Street overnight, as uncertainty continues over US reciprocal tariffs despite the tariff's kicking in on Thursday. Market uncertainty is created by the pressure tactics exerted by the US by constantly altering tariffs. Meanwhile, the average of household spending in Japan was down a seasonally adjusted 5.2 percent on month in June, coming in at 316,085 yen. Also, Japan posted a current account surplus of 1.348 trillion yen in June.

The BSE Sensex is currently trading at 80285.45, down by 337.81 points or 0.42% after trading in a range of 80253.41 and 80550.40. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.52%, while Small cap index was down by 0.12%.

The only gaining sectoral indices on the BSE were Oil & Gas up by 0.29% and Energy up by 0.20%, while TECK down by 1.14%, Telecom down by 1.06%, Consumer Durables down by 0.75%, IT down by 0.63% and Metal down by 0.57% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 0.80%, Titan Company up by 0.49%, Bajaj Finserv up by 0.32%, NTPC up by 0.29% and ITC up by 0.10%. On the flip side, Bharti Airtel down by 2.62%, Infosys down by 0.96%, Mahindra & Mahindra down by 0.80%, Bharat Electronics down by 0.71% and Axis Bank down by 0.70% were the top losers.

Meanwhile, following Trump’s administration’s decision to double tariffs on Indian imports, U.S. President Donald Trump has said there will be no trade negotiations with India until a dispute over tariffs is resolved. India and the U.S. teams had concluded the fifth round of talks for the agreement in July in Washington, ahead of the August 1 deadline for Trump’s tariff suspension. A U.S. team was to visit India on August 25 for the next round of negotiations for the proposed bilateral trade agreement between the two countries.

But the White House on August 6, 2025 issued an Executive Order imposing an additional 25% in tariffs on Indian goods, raising the total levy to 50%. The administration cited national security and foreign policy concerns, pointing specifically to India’s ongoing imports of Russian oil.

The order claims that these imports, whether direct or via intermediaries, present an ‘unusual and extraordinary threat’ to the United States and justify emergency economic measures. According to US officials, the initial 25% tariff came into effect on August 07, 2025. The additional levy will take effect in 21 days and apply to all Indian goods entering US ports - with exceptions for items already in transit and certain exempt categories.

The CNX Nifty is currently trading at 24484.70, down by 111.45 points or 0.45% after trading in a range of 24483.90 and 24585.50. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 0.85%, Bajaj Finance up by 0.78%, HDFC Life Insurance up by 0.42%, NTPC up by 0.36% and Bajaj Finserv up by 0.31%. On the flip side, Bharti Airtel down by 2.57%, Hindalco down by 1.16%, Shriram Finance down by 1.08%, Infosys down by 1.04% and Adani Enterprises down by 0.98% were the top losers.

Asian markets are trading mixed; Nikkei 225 surged 916.85 points or 2.23 to 41,976.00, Jakarta Composite gained 46.79 points or 0.62 to 7,536.97, Taiwan Weighted rose 15.95 points or 0.07 to 24,019.72 and Shanghai Composite strengthened 2.43 points or 0.07 to 3,642.10. On the other hand, Hang Seng declined 236.63 points or 0.95 to 24,845.00, Straits Times fell 22.44 points or 0.53 to 4,235.71 and KOSPI was down by 21.36 points or 0.66 to 3,206.32.
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