Sensex, Nifty Set To Drift Lower As Tariff Worries Intensify

(RTTNews) - Indian shares look set to open on a sluggish note Friday as U.S. President Donald Trump pushes through with his tariff agenda, fueling uncertainties around the global tariff war.

In a letter posted to Truth Social late on Thursday, Trump has announced a broad 35 percent tariff on Canadian goods and warned that any fiscal retort from the country will be tacked onto the 35 percent set to take effect Aug. 1.

Separately, in an interview with NBC News published late Thursday, Trump floated 15 percent to 20 percent blanket tariffs on most trading partners, higher than the 10 percent level currently in effect.

Trump also teased a 'major statement' he intends to make on Russia on Monday without specifying details as the U.S. prepares to send new American weapons to Ukraine via purchases from NATO allies.

Meanwhile, IT stocks may come under selling pressure after TCS' Q1 earnings for the first quarter missed estimates.

The country's largest software services exporter has warned of delayed client decisions and paused projects against the backdrop of a sluggish macroeconomic environment, cautious customer sentiment and geopolitical instability.

Other earnings also disappointed, with IREDA seeing a sharp deterioration in its asset quality and Tata Elxsi turning in yet another weak quarter.

Benchmark indexes Sensex and Nifty ended Thursday's session modestly lower as Trump intensified his tariff war strategy. The rupee settled higher by 4 paise at 85.69 against the dollar.

Asian markets traded mixed this morning and U.S. stock futures dipped while the dollar strengthened and gold rose for a third day on safe-haven demand.

Oil prices recovered some ground after a 2 percent drop on Thursday, driven by tariff uncertainty, concerns over slower Chinese demand and OPEC's reduced oil demand forecast.

U.S. stocks rose overnight as focus shifted to corporate earnings, with Delta Airlines forecasting third-quarter and full-year profits above Wall Street estimates.

Investors also cheered data that showed weekly jobless claims unexpectedly slipped to a seven-week low.

The tech-heavy Nasdaq Composite inched up marginally and the S&P 500 rose 0.3 percent to post record closing highs while the Dow added 0.4 percent.

European stocks rose for the fourth day on Thursday amid expectations the European Union and the U.S. will strike a trade deal soon.

The pan European STOXX 600 gained half a percent. While the German DAX dipped 0.4 percent, France's CAC 40 edged up by 0.3 percent and the U.K.'s FTSE 100 climbed 1.2 percent.