Indian markets seemed to ignore US President Donald Trump’s 50 per cent tariff threat with Sensex and Nifty both recovering from their day’s lows demonstrating resilience despite prevailing global uncertainties.
According to reports, the recovery was primarily driven by buying in banking, pharma and select IT sectors. Apparently, some analysts believe that Trump’ tariff may end up benefiting IT services through currency depreciation. Though markets did open under pressure initially, shrugging off apprehensions, they rebounded strongly
“Both BSE Sensex and NSE Nifty staged a strong rebound, dismissing all the fears sparked by Trump’s announcement of fresh tariffs on Indian imports,” they said
“After falling nearly 0.9% in early trade, the benchmark indices ended in positive terrain, driven by value buying,” analysts said, adding that the 21-day implementation window (given by Trump) also gave some negotiation space. Plus, of course, the market’ ability to recover from intraday lows also proved India’s underlying strength and buying appetite at lower levels, they added.
Trump on Wednesday announced an additional 25 percent tariff on India for purchases of Russian oil, bringing the total duties on India to 50 percent, among the highest for any country in the world. India in response said it will take “all actions necessary to protect its national interests”
Prime Minister Narendra Modi on Thursday also gave a veiled response to Trump’s tariff threats on India, saying that India will “never compromise” on the interest of farmers and that their interests were his government’s top priority. “For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen and dairy farmers,” PM Modi said, speaking at the MS Swaminathan Centenary International Conference.
Without naming the US or Trump, PM Modi added that he was aware of the cost of taking such a stand. “I know we will have to pay a heavy price for it and I am ready for it. India is ready for it, he said
The official statement by the Ministry of External Affairs noted that the “United States has in recent days targeted India’s oil imports from Russia” while India made clear its position on these issues, “including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India.”
“It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,” it said, reiterating “these actions are unfair, unjustified and unreasonable.”
“India will take all actions necessary to protect its national interests,” it added
