GIFT Nifty hints towards positive start to equities; Trump threatens to impose steeper tariffs on India

GIFT Nifty:

GIFT Nifty August 2025 futures were currently trading 45.50 points (or 0.18%) higher, suggesting a flat to mildly positive opening for the Nifty 50 today.

Trump Tariffs:

U.S. President Donald Trump has announced his plans to significantly raise tariffs on Indian exports to the country.

India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,' Trump reportedly wrote on a social media platform.

India said it was is being 'targeted' by the U.S. and the European Union over its imports of Russian oil after U.S. President Donald Trump in an overnight social media post threatened New Delhi with much steeper tariffs.

India began importing oil from Russia only after traditional supplies were diverted to Europe following the outbreak of the Russia-Ukraine war in 2022, the Indian foreign ministry reportedly said in a statement.

The ministry stated that it was revealing that the very nations criticizing India ' namely the EU and the U.S. ' were themselves engaging in trade with Russia.

The EU's bilateral trade with Russia stood at 67.5 billion euros ($78.1 billion) in 2024, while its services trade in 2023 was at 17.2 billion euros, according to European Commission data. Citing that data, India said the bloc's trade was 'significantly more' than India's total trade with Russia.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 2,566.51 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 4,386.29 crore in the Indian equity market on 04 August 2025, provisional data showed.

According to public data, FPIs have sold shares worth Rs 5,932.91 crore in the cash market during August 2025. This follows their cash sales of shares worth Rs 47,666.68 crore in July 2025.

Global Markets:

Markets in Asia edged higher on Tuesday, marking a second straight day of gains, as investor optimism grew that the Federal Reserve will take steps to support the world's largest economy.

A few Bank of Japan board members said the central bank would consider resuming interest rate increases if trade friction de-escalates, minutes of its June policy meeting reportedly showed on Tuesday.

At the June 16-17 meeting, the BOJ kept interest rates steady at 0.5% and decided to decelerate the pace of its balance sheet drawdown next year, signalling its preference to move cautiously in removing remnants of its massive stimulus.

Meanwhile, South Korea's consumer prices rose 2.1% in July from a year earlier, slightly slower than the rise of 2.2% in June, government data showed on Tuesday.

On Wall Street, all the three major averages soared into the green on Monday, with the Dow Jones Industrial Average recouping its losses from Friday's session.

The blue-chip index climbed 585.06 points, or 1.34%, to finish the day at 44,173.64. Additionally, the broad market S&P 500 and the tech-heavy Nasdaq Composite rocketed higher by 1.47% and 1.95%, ending at 6,329.94 and 21,053.58, respectively.

Domestic Market:

Domestic benchmark indices kicked off the week on a positive note, snapping a two-day losing streak. Investors weighed developments around U.S. tariffs and the Federal Reserve's policy stance amid signs of a softening labour market. The Nifty 50 closed comfortably above the 24,700 mark, buoyed by broad-based gains in metal, auto, and IT stocks.

On Monday, the S&P BSE Sensex advanced 418.81 points or 0.52% to 81,018.72. The Nifty 50 index gained 157.40 points or 0.64% to 24,722.75.

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