Sensex, Nifty Likely To See Muted Open

(RTTNews) - Indian shares look set to open largely unchanged on Tuesday due to renewed uncertainty over U.S. tariff policies.

There are mild hopes for deals over punishing tariffs after U.S. President Donald Trump unveiled a three-week extension until Aug. 1 to negotiate trade agreements, adding he was still open to additional negotiations and that the earlier notifications were "not 100 percent firm."

Trump also announced that the United States is on the verge of concluding a trade pact with India.

Benchmark indexes Sensex and Nifty ended on a flat note Monday after a choppy session. The rupee weakened by 46 paise to close at 85.85 against the dollar after Trump threatened an additional 10 percent levy on BRICS nations.

Asian markets were muted in cautious trade this morning. Yields inched higher while the dollar weakened after rising the most in three weeks on Monday.

Gold ticked lower after reversing losses in the previous session. Oil traded lower, with Trump's tariff threats and an escalation of hostilities in the Red Sea in focus.

U.S. stocks fell sharply overnight on renewed trade, inflation and growth concerns as President Trump revealed plans to impose new tariffs on imports from at least seven countries.

Trump, in a series of Truth Social posts, shared signed letters addressed to various world leaders detailing new tariff rates set to take effect on August 1.

Imports from Japan, South Korea, Malaysia and Kazakhstan are now set to face 25 percent tariffs, according to the letters.

South African imports will be subject to a 30 percent tariff, while imports from Laos and Myanmar will face a 40 percent tariff.

Trump also warned that tariffs could be raised above the respective rates if the countries respond with their own tariffs on the U.S.

The Dow and the tech-heavy Nasdaq Composite both shed around 0.9 percent while the S&P 500 declined 0.8 percent.

European stocks ended mostly higher on Monday as investors waited for several trade deal announcements from the White House in the coming days.

The pan-European STOXX 600 gained 0.4 percent. The German DAX climbed 1.2 percent and France's CAC 40 added 0.4 percent while the U.K.'s FTSE dipped 0.2 percent.