Sensex, Nifty Likely To Open On Cautious Note Before US Tariff Announcements

(RTTNews) - Indian shares look set to open on a cautious note Wednesday as uncertainty prevails over the size and the scope of new U.S. tariffs to be announced later in the day.

As the clock counts down, market participants are waiting to see whether the 'Liberation Day' will mark the end around tariff uncertainty or introduce even more uncertainty, hurt sentiment and trigger further downfall.

Benchmark indexes Sensex and Nifty fell around 1.8 percent and 1.5 percent, respectively on Tuesday to extend losses for a second straight session, with tech stocks and banks leading losses.

Foreign institutional investors (FIIs) remained net sellers for the second consecutive session on Tuesday, offloading shares worth Rs 5,901 crore, while domestic institutional investors (DIIs) were net buyers of shares to the extent of Rs 4,322 crore, as per provisional data.

Asian markets were muted this morning, the dollar held steady, and gold ticked higher on safe-haven demand while oil prices were largely unchanged.

U.S. stocks fluctuated before finishing higher overnight ahead of the impending tariff announcements, with the Washington Post noting that White House aides have drafted a proposal to impose tariffs of around 20 percent on most imports to the United States, but several options are on the table.

Investors shrugged off data that showed activity in the U.S. manufacturing sector contracted in March after two consecutive months of expansion.

Job openings fell in February, but layoffs remained subdued, adding to evidence of a gradually cooling labor market.

The tech-heavy Nasdaq Composite surged 0.9 percent and the S&P 500 rose 0.4 percent after hitting six-month intraday lows on Monday. The Dow finished marginally lower.

European stocks closed higher on Tuesday after European Commission President Ursula von der Leyen said that the European Union is open to negotiations with the U.S. on tariffs, but all countermeasures are on the table.

The pan European STOXX 600 climbed 1.1 percent, snapping a four-session losing streak. The German DAX gained 1.7 percent, France's CAC 40 rallied 1.1 percent and the U.K.'s FTSE 100 added 0.6 percent.