Indian equities are set for a cautious start on Thursday, with weak global cues and renewed trade concerns clouding investor sentiment. Markets remain on edge after President Donald Trump’s punitive tariffs on Indian-origin goods took effect, while a post-results decline in Nvidia shares dragged down US futures, dampening appetite for technology stocks.
Following the Ganesh Chaturthi holiday, traders expect volatility, though bargain-hunting at lower levels could offer some support. Analysts caution that the direct impact of Washington’s tariff order may take time to play out, but the scale of potential export and job losses is already worrying markets.
Nvidia’s second-quarter earnings beat market expectations on both revenue and profit, but weaker-than-expected data centre sales prompted selling in after-hours trade. The stock, which has tripled in 18 months and gained 35 percent so far this year, fell back, pushing Nasdaq futures lower. Nvidia alone accounts for nearly 8 percent of the S&P 500’s weighting.
Across Asia, indices were mixed. Japan’s Nikkei fell 1 percent before staging a recovery, while South Korea and Australia slipped about half a percent each. Hong Kong and Shanghai moved higher.
Trump’s tariff move is expected to slash Indian exports to the US by more than 40 percent this fiscal year, analysts estimate, which could shave 0.4 percent off GDP growth. Forecasts for growth remain clustered around 6 percent, but if the downside risks materialise, expansion could dip closer to 5.5 percent—a potential setback for India’s 2047 development ambitions.
On Tuesday, the Sensex plunged 849.37 points, or 1.04 percent, to close at 80,786.54, while the Nifty 50 fell 255.70 points, or 1.02 percent, to 24,712.05. The Bank Nifty slipped 1.25 percent to 54,450.45. Mid cap and small cap indices fared worse, losing 1.62 percent and 2.03 percent respectively. Market breadth was weak, with nearly three stocks declining for every one that gained on the NSE.
Foreign portfolio investors sold a net ₹6,516.49 crore in the cash segment, while domestic funds provided support with purchases of ₹7,060.37 crore. Analysts warn that if the Nifty fails to hold above its 100-day exponential moving average of 24,635, further downside towards 24,500 could be on the cards. Resistance is expected near 24,865 and 24,920.
European equities were volatile. On Tuesday, the French CAC tumbled 1.7 percent as concerns grew that Prime Minister François Bayrou’s cabinet could lose a confidence vote on 8 September amid unpopular austerity measures. Germany’s DAX and Britain’s FTSE edged lower, though the CAC clawed back 0.44 percent on Wednesday. Banking shares weakened after Goldman Sachs downgraded Commerzbank to ‘sell’ and Deutsche Bank to ‘neutral’.
On Wednesday, the S&P 500 closed at a record 6,481.40, up 0.24 percent, while the Dow added 0.32 percent and the Nasdaq gained 0.21 percent.
Gold prices have been volatile as Trump escalated his confrontation with the Federal Reserve. Spot gold rose 0.8 percent on Tuesday to $3,394.40 an ounce and edged up further to $3,397.50 on Wednesday, though early Thursday trade saw a pullback to around $3,386. In Kerala, 22-carat gold hit ₹75,120 per sovereign.
Brent crude climbed to $68.05 on Wednesday before easing to $67.66. India’s interest in UAE’s Murban crude helped lift that grade by over 2 percent. Industrial metals weakened, with copper slipping to $9,681.65 per tonne and aluminium down to $2,604.85, though tin gained 1.44 percent.
The dollar index softened from Tuesday’s close of 98.23 to 98.11 in early Thursday trade. The euro edged up to $1.1643, sterling to $1.35, while the yen weakened to 147.38 per dollar. The rupee closed at 87.68 per dollar on Tuesday, down 10 paise.
Bitcoin swung sharply, dropping below $1,09,500 before rebounding to $1,11,500, while ether held above $4,500.
August 26, Tuesday
Sensex 30: 80,786.54 (−1.04%)
Nifty 50: 24,712.05 (−1.02%)
Bank Nifty: 54,450.45 (−1.25%)
Mid cap 100: 56,766.20 (−1.62%)
Small cap 100: 17,548.60 (−2.03%)
Dow Jones: 45,418.07 (+0.60%)
S&P 500: 6,465.94 (+0.41%)
Nasdaq: 21,544.27 (+0.44%)
Dollar: ₹87.68 (+₹0.10)
Gold (ounce): $3,394.40 (+$27.10)
Gold (sovereign): ₹74,840 (+₹400)
Crude (Brent): $67.22 (−$1.58)
August 27, Wednesday
Dow Jones: 45,565.23 (+0.32%)
S&P 500: 6,481.40 (+0.24%)
Nasdaq: 21,590.14 (+0.21%)
Gold (ounce): $3,397.50 (+$3.10)
Gold (sovereign): ₹75,120 (+₹280)
Crude (Brent): $68.05 (+$0.83)
Commodities
Gold: $3,397.50/oz; ₹75,120 per sovereign
Brent crude: $68.05/barrel
Currencies
Rupee: ₹87.68/$
Dollar index: 98.11
Crypto
Bitcoin: $1,11,500
Ether: $4,500+
