Sensex, Nifty Set To Follow Asian Peers Higher

(RTTNews) - Indian shares look set to open higher on Tuesday despite signs of rising tensions between the U.S. and China.

China threatened to "resolutely take countermeasures to safeguard its own rights and interests," in response to U.S. President Donald Trump's threat of an additional 50 percent tariff on Chinese imports.

Gains in other Asian markets may offer some relief but volatility is not ruled out as investors await further developments on the tariff front.

Analysts say that the main impact on India will not be U.S. tariffs but an expected U.S. recession that will depress the GDP of all countries, including India.

Benchmark indexes Sensex and Nifty tumbled 3 percent and 3.2 percent, respectively on Monday amid tariff woes.

Foreign investors sold Indian shares worth Rs 9,040 crore on Monday, marking their largest one-day selloff since 28 February 2025, while domestic institutions acquired shares valued at Rs 12,122 crore, as per provisional data.

Asian markets were trading higher this morning, with Japan's Nikkei surging over 6 percent on trade deal optimism.

Treasuries steadied after Monday's sharp selloff, the dollar slipped against major peers and gold was little changed near a four-week low while oil gained after tumbling to a four-year low the previous day.

U.S. stocks ended mixed overnight after a volatile session. The Dow shed 0.9 percent to extend declines for a third day running as President Trump threatened even higher tariffs against China and the White House dismissed speculation of some sort of tariff pause.

Trump threatened to impose an additional 50 percent tariff on Chinese goods unless the country withdraws its new 34 percent tariff on U.S. goods.

He also threatened to terminate negotiations with China and said that "tough but fair parameters are being set" for trade talks with other countries.

The S&P 500 dipped 0.2 percent while the tech-heavy Nasdaq Composite plunged over 5 percent before reversing course to end marginally higher.

European stocks fell to their lowest is more than a year on Monday as investors fled to safe-haven assets amid recession worries.

The pan-European STOXX 600 plunged 4.5 percent. The German DAX slumped 4.1 percent, France's CAC 40 plummeted 4.8 percent and the U.K.'s FTSE 100 lost 4.4 percent.