India’s stock markets opened sharply lower reacting to the highest-ever U.S. tariffs on Indian goods, now totaling 50% due to New Delhi’s purchase of Russian oil. Analysts say the tariffs are putting near-term pressure on equity markets and export-oriented sectors.
At 9:45 am, the S&P BSE Sensex dropped 467 points (0.56%) to 80,323.75, while the Nifty 50 fell 0.56% to 24,574 points. Fourteen of the sixteen major sectors posted losses, while small-cap and mid-cap indices declined 0.2% and 0.1%, respectively.
According to Santosh Meena, head of research at Swastika Investmart, the sharp selloff is a direct response to U.S. tariffs targeting India’s textiles, apparel, gems and jewellery, seafood, chemicals, and auto component sectors.
Additionally, foreign portfolio investors have sold $2.66 billion worth of Indian shares in August, marking the largest outflows since February, amid tariff worries and a muted corporate earnings season.
Oil prices also fell as investors assessed potential shifts in global fuel supply due to U.S. sanctions and tariff pressures on Indian imports.
