Global markets remained on edge on Thursday amid uncertainty over interest rates and the looming threat of US tariffs on Indian exports. Volatility is expected to persist in Indian equities, with traders closely watching geopolitical tensions and policy signals.
Hopes of an early end to the Ukraine war have faded, pushing crude oil prices higher, while deteriorating conditions in West Asia added to concerns.
In domestic policy developments, a ministerial panel approved proposals to reduce goods and services tax (GST) slabs. If cleared by the GST Council in the third week of September, the new structure could come into effect from October 1.
Meanwhile, India–US trade talks remain stalled. Washington has threatened to impose a 50 percent punitive tariff on Indian goods from August 28. Analysts warned that the move could slash India’s exports to the US by as much as 60 percent. Last year, India shipped $8.9 billion worth of goods to the US. A 60 percent fall could shave 1 percent off India’s GDP, though the impact this fiscal year may be contained to 0.40 percent as five months have already elapsed.
In derivatives trade, Gift Nifty closed at 25,094.00 on Thursday night and slipped to 25,070 in early moves, pointing to a weak start for Indian equities.
European markets closed mixed. The Stoxx 600 slipped marginally while Germany’s DAX edged higher. France’s CAC fell 0.44 percent, but London’s FTSE gained.
Details of a US–Europe trade understanding emerged: US tariffs on European pharmaceuticals will be capped at 15 percent, while duties on American industrial goods will be removed. In return, the US will impose a 15 percent tariff on European cars and auto components.
Wall Street closed lower as tech stocks extended their decline and Walmart reported weaker-than-expected earnings, despite beating sales forecasts. The retailer also flagged pressure on profit margins from rising tariffs.
Solar stocks tumbled after President Donald Trump announced that no new permits would be granted for solar and wind power projects. Beauty retailer Coty posted a quarterly loss, sending its shares down 20 percent.
The Dow Jones fell 152.81 points (0.34 percent) to 44,785.50, the S&P 500 dropped 25.61 points (0.40 percent) to 6,370.17, and the Nasdaq Composite slipped 72.55 points (0.34 percent) to 21,100.31.
US futures ticked up slightly in early trade, with the Dow and S&P up 0.05 percent and 0.04 percent respectively, while the Nasdaq edged 0.08 percent lower.
Asian markets also traded mixed. Japan’s inflation eased to 3.1 percent in July from 3.3 percent, lifting the Nikkei by 0.10 percent in early trade. South Korean and Australian benchmarks declined.
Despite sustained foreign and domestic selling pressure, Indian indices posted gains for a sixth straight session on Thursday. However, both Sensex and Nifty closed near the day’s lows, reflecting fragile sentiment.
Fears that the US will not roll back the threatened 25 percent punitive tariff from August 28 weighed on sentiment. Realty, pharmaceuticals and healthcare supported gains, along with Reliance Industries, while FMCG and auto stocks declined.
Reports that Sebi is considering extending the tenure of derivative contracts hit exchanges and brokerages, with BSE and Angel One plunging over 7 percent.
Online gaming firm Nazara Technologies fell more than 2 percent, hit by fears that a proposed ban on real-money gaming could force it to write off over ₹800 crore in investments in PokerBaazi. The stock has lost 15 percent in three days.
Jupiter Wagons surged 8 percent intraday after bagging a ₹215 crore wheels contract, before ending 3.5 percent higher. Ola Electric fell 8 percent, erasing recent gains, after registration data showed rival Ather Energy overtook it in July.
The Nifty closed up 33.20 points (0.13 percent) at 25,083.00, the Sensex rose 142.87 points (0.17 percent) to 82,000.71, and Bank Nifty gained 56.95 points (0.10 percent) to 55,755.45. The Midcap 100 fell 0.38 percent, while the Smallcap 100 eased 0.01 percent.
Market breadth was almost even, with 2,039 stocks rising against 2,058 falling on the BSE. On NSE, 1,503 advanced and 1,475 declined.
Foreign institutional investors were net buyers of ₹1,246.51 crore, while domestic funds purchased equities worth ₹2,546.27 crore.
Vedanta Ltd declared a second interim dividend of ₹16 per share, amounting to ₹6,256 crore. London-based Vedanta Resources, which owns 51 percent, will receive the bulk of the payout to pare debt. The company’s Q1 revenue fell 6.5 percent and profit slipped 8.6 percent.
IDBI Bank’s privatisation process has gathered pace, with the government aiming to complete the sale by December.
Apollo Hospitals’ promoters will sell a 1.25 percent stake worth ₹1,394 crore via block deals, with a floor price of ₹7,747 a share, 2.26 percent below market levels.
Gold eased on profit booking ahead of a key speech from Federal Reserve Chair Jerome Powell. Spot gold closed $9.70 lower at $3,339.20 per ounce, slipping further to below $3,335 in early Friday trade. In Kerala, retail gold rose ₹400 per sovereign to ₹73,840. Silver declined 0.5 percent to $38.14 per ounce.
The dollar index rose to 98.62 and strengthened further to 98.70 in Asian trade. The rupee weakened 20 paise to 87.27 per dollar on Thursday.
US 10-year bond yields climbed to 4.328 percent as prices fell.
Brent crude settled 1.24 percent higher at $67.67 a barrel on Thursday, before easing to $67.47 early Friday. WTI stood at $63.35 and Murban at $70.39. Natural gas declined 0.5 percent.
Bitcoin fell towards $112,250, while Ethereum held above $4,230.
