Sensex, Nifty Set For Muted Open

(RTTNews) - Indian shares look set to open on a flat note Thursday as investors watch the latest developments on the trade front, react to the latest FOMC meeting minutes and look for direction from Q1 business updates from prominent companies.

After releasing tariff warning letters to seven additional countries on Wednesday, U.S. President Donald Trump raised the tariffs on Brazilian imports to 50 percent from 10 percent, effective August 1.

Trump tied the levy to Brazil's prosecution of former president Jair Bolsonaro over an alleged attempted coup following the 2022 election, when Bolsonaro was defeated by President Luiz Inacio Lula da Silva.

"Any unilateral tariff increases will be addressed in light of the Brazilian Law of Economic Reciprocity," Lula posted on X, as diplomatic tensions between the two nations deepened.

Trump also announced a 30 percent levy on Algeria, Libya, Iraq and Sri Lanka, 25 percent duties on products from Brunei and Moldova and a 20 percent rate on goods from the Philippines.

On the earnings front, Tata Consultancy Services and Tata Elxsi will unveil their quarterly earnings results today.

Benchmark indexes Sensex and Nifty both ended down around 0.2 percent on Wednesday due to ongoing uncertainty over U.S. President Donald Trump's tariff plans. The rupee gained 6 paise to settle at 85.67 against the dollar.

Asian markets were mixed this morning, Treasuries rose slightly, and the dollar slipped while gold edged higher, with potential Fed rate cuts in focus. Oil prices were down slightly as tariff uncertainty clouded the outlook for fuel demand.

U.S. stocks rose overnight after the minutes from the Fed's mid-June meeting showed support for a rate cut later this year.

Officials noted that economic growth and the labor market remain solid and that price shocks from Trump's import taxes will be "temporary or modest."

The tech-heavy Nasdaq Composite climbed 0.9 percent to close at a record high, while the S&P 500 gained 0.6 percent and the Dow added half a percent.

European stocks rose for a third consecutive session on Wednesday amid optimism about a potential trade between the U.S. and the European Union.

The pan-European STOXX Europe 600 advanced 0.8 percent. The German DAX and France's CAC 40 both rallied around 1.4 percent while the U.K.'s FTSE 100 edged up by 0.2 percent.