Indian Markets Dip as Tariff Tensions Rise Over Russian Oil Imports.
Indian equity benchmarks opened in the red on Tuesday, weighed down by renewed global trade concerns after former US President Donald Trump issued fresh tariff threats targeting India’s continued oil imports from Russia.
By 9:23 am, the S&P BSE Sensex was down 156.96 points at 80,861.76, while the NSE Nifty50 slipped 30.80 points to 24,691.95. Broader market indices also reflected the cautious sentiment, as investors weighed geopolitical risks with valuation concerns.
On the Nifty50, IndusInd Bank, Jio Financial Services, Maruti, SBI, and Ultratech Cement led the gainers’ list. HDFC Bank, BEL, Reliance Industries, Nestle, and Infosys were among the top losers.
Prashanth Tapse, Senior Vice President (Research) at Mehta Equities, described the market tone as “subdued to weak,” citing a lacklustre trend in Gift Nifty. He suggested that while Asian cues might offer some support intraday, Trump’s tariff threat has heightened investor nervousness. “Nifty bulls will remain hesitant below the 25,000 mark, and a close below 24,473 could invite further downside,” he cautioned.
The renewed anxiety was sparked by Trump’s warning to “substantially raise” tariffs on India if it continues purchasing Russian crude oil—reviving fears of a major disruption in India-US trade relations.
India, however, has strongly rebutted the threat, calling it “unjustified and unreasonable.” The government’s firm stance suggests little appetite for policy concessions, even as the diplomatic friction casts a shadow on market sentiment.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, warned that such threats pose a “major risk” to bilateral trade and could dent India’s exports to the US. “This would not only impact GDP growth but also weigh on corporate earnings in FY26,” he said.
He further noted that markets—already trading at elevated valuations—have not priced in the risk of a prolonged tariff standoff. “We’re in uncharted territory. If Nifty breaks the 24,500 support level, sharper corrections can’t be ruled out,” he added. In such a scenario, he advised cautious investors to consider partial allocations to fixed-income instruments as a hedge.
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