Sensex, Nifty Seen Lower As Investors Fret About Trump's Tariff Policy

(RTTNews) - Indian shares look set to open on a sluggish note Wednesday, tracking mixed cues from global markets after U.S. President Donald Trump offered no exceptions to his Aug. 1 tariff start date.

Trump also announced a 50 percent tariff on copper imports and hinted at a potential 200 percent tariff on pharmaceuticals, marking a new phase in his aggressive trade policy.

Closer home, media reports suggest that India is not desperate for an early trade deal at the cost of the country's interest.

Benchmark indexes Sensex and Nifty eked out modest gains on Tuesday after reports suggested that a mini trade deal between the U.S. and India could be announced "in a day or two". The rupee rose by 26 paise to close at 85.68 against the U.S. dollar.

Asian markets were mostly lower in cautious trade this morning, with trade headlines and Chinese inflation data in focus.

Data showed China's consumer price inflation grew slightly in June while producer prices plunged 3.6 percent in the month, marking its largest decline since July 2023.

The dollar strengthened against the yen for the third consecutive session following Trump's announcement of tariffs on Japan and other trade partners.

Gold held a decline to hover near $3,300 per ounce as investors pared bets on Federal Reserve interest-rate cuts by year-end.

Oil prices eased from two-week highs after industry data showed a sharp rise in U.S. crude inventories.

Overnight, U.S. stocks fluctuated before ended narrowly mixed due to ongoing uncertainty about President Trump's tariff plans.

Trump said Tuesday his extended Aug. 1 deadline for his "Liberation Day" tariffs will stick, after previously suggesting it wasn't "100 percent firm."

Adding to the uncertainty, he also announced a 50 percent tariff on copper imports as part of a set of looming sectoral tariffs and threatened a 200 percent tariff on pharmaceutical imports.

The tech-heavy Nasdaq Composite inched up marginally while the S&P 500 ended with a negative bias and the Dow dipped 0.4 percent.

European markets closed on a positive note Tuesday as investors waited for an update on the U.S.-EU trade deal.

The pan European STOXX 600 gained 0.4 percent. The German DAX and France's CAC 40 both rose by 0.6 percent while the U.K.'s FTSE 100 added half a percent.