Stock Market Highlights: Indian equity markets turned positive during Thursday’s afternoon session, recovering from a weak start following the US government’s announcement of 25% tariffs and penalties on India. As of 12:58 PM, the BSE Sensex had gained 156 points, trading at 81,634.13, while the NSE Nifty was up by 48 points at 24,903.
Here are the five main reasons behind the market rebound today:
Optimism Over Trade Talks: Market participants took comfort in President Trump’s assurance that trade discussions with India would continue, despite the imposition of 25% tariffs. Investors interpreted this as a strategic move rather than a permanent position.
Crude Oil Decline: Brent crude prices fell slightly to $73.10 per barrel, helping ease inflationary pressure on India, which heavily relies on oil imports.
Global Market Cues: Strong gains in Asian indices along with positive cues from US equity futures boosted overall market sentiment.
Rupee Recovery: The Indian rupee recovered by 14 paise to settle at 87.66 against the US dollar amid hopes of intervention by the Reserve Bank of India, after touching a sharp intraday low.
Expectations of Fed Rate Cut: Dovish comments from US Federal Reserve officials raised expectations of a rate cut in September, contributing to a global risk-on mood.
At the opening bell, the Nifty50 had slipped 182.60 points or 0.73% to 24,668.20, while the Sensex had dropped 611.48 points or 0.75% to 80,870.38.
During early trade, the Sensex had touched a low of 81,695.15, while the Nifty fell to 24,635 before staging a notable recovery in the afternoon session.
In a strong statement, President Trump alleged that India enforces “some of the highest tariffs globally” and maintains “the most burdensome and offensive non-monetary trade barriers of any nation.” He further warned of additional penalties linked to India’s ongoing energy purchases from Russia.
Following the announcement, India is now subject to one of the steepest US tariff structures. In comparison, Vietnam is facing 20% tariffs, Indonesia 19%, and Japan 15%. Brazil, on the other hand, has been given temporary relief from a proposed 50% tariff.
Industries expected to be most affected include textiles, pharmaceuticals, gems and jewellery, automobiles, and petrochemicals — sectors that account for a substantial portion of India’s exports to the US.
