Indian equity benchmarks may open little changed on Thursday as US President Donald Trump’s new taxes on auto imports have hit investor sentiment amid looming US reciprocal trade tariffs.
The GIFT Nifty futures were trading at 23,510 as of 7:59 a.m. IST, indicating the blue-chip Nifty 50 index will open near Wednesday’s close of 23,486.85, when the benchmarks snapped a seven-session winning streak.
Analysts expect volatility to remain elevated ahead of the expiry of Nifty 50’s March derivatives contracts on Thursday, which will see investors either closing their positions or rolling them over.
Other Asian markets logged losses on the day, with the MSCI Asia ex-Japan index falling 0.6%.
Wall Street equities ended sharply lower overnight. Post U.S. market hours on Wednesday, Trump announced plans for 25% tariffs on automotive imports, effective on April 2.
The European Union expressed regret and Canada said it could impose retaliatory tariffs, ratcheting up global trade tensions and inflationary risks.
Indian shares little changed as investors eye US tariff clarity
Trump is due to impose retaliatory tariffs on April 2 but the U.S. administration has indicated that not all tariffs will be imposed. However, there is no clarity on the countries and sectors that may be spared.
Foreign portfolio investors bought Indian shares for the fifth straight session on Wednesday, with net inflows amounting to 22.41 billion rupees ($261 million).
The outflows from Indian shares in March are set to ease to a three-month low.
The Nifty 50 has risen more than 6% in March so far, and remains on course to snap its longest monthly losing streak in nearly three decades.
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