GIFT Nifty hints at green opening even as Trump's 50% tariff kicks-in

GIFT Nifty:

GIFT Nifty August 2025 futures were currently trading 29.00 points (or 0.12%) higher, suggesting that the Nifty 50 could open with some gains today.

Trump Tariffs:

President Trump?s secondary U.S. tariffs of 25% on Indian shipments kicked in Wednesday, pushing overall duties on the country?s exports to 50%.

A global research house has reportedly stated that the risks to growth for the Indian economy have naturally become more real.

India?s top exports to the U.S., which are electrical machinery as well as gems and jewelry, face the largest tariff increases, the report stated. Trade talks between the Indian and U.S. delegations, however, are expected to continue.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 6,516.49 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 7,060.37 crore in the Indian equity market on 26 August 2025, provisional data showed.

According to public data, FPIs have sold shares worth Rs 34,733.75 crore in the cash market during August 2025. This follows their cash sales of shares worth Rs 47,666.68 crore in July 2025.

Global Markets:

Asia-Pacific markets traded mix Thursday as investors digested the Bank of Korea policy decision.

South Korea?s central bank kept its policy rate unchanged at 2.5% for its second straight meeting despite an uncertain trade environment for the country.

Overnight on Wall Street, the three major benchmarks closed higher stateside.

The S&P 500 ticked higher and ended the day up 0.24% at 6,481.40, setting a fresh all-time closing high. The Nasdaq Composite closed up 0.21% at 21,590.14, and the Dow Jones Industrial Average gained 147.16 points, or 0.32%, to finish at 45,565.23.

Shares of Nvidia, the world's most valuable company and the leading supplier of cutting-edge AI processors, fell in extended trading, even after its second-quarter results beat widely reported market estimates. This was primarily due to the fate of the company?s China business hung in the balance, caught up in the trade war between Washington and Beijing.

Investors kept an eye for developments related to U.S. President Donald Trump's attempt to fire Federal Reserve Governor Lisa Cook, a move likely to face legal challenges.

Domestic Market:

The key equity benchmarks ended with sharp losses on Tuesday, unsettled by concerns over potential U.S. trade actions. Investor sentiment soured after Washington issued a draft notice proposing tariffs of up to 50% on Indian goods, effective from Wednesday, 27 August 2025.

The slide was compounded by persistent FII selling, weakness in the rupee, and negative cues from global markets. Both the Sensex and Nifty gave up last week?s gains, with the Nifty closing below the 24,750 mark. Sectorally, consumer durables and metal stocks were among the worst hit. In contrast, FMCG counters bucked the downtrend.

The S&P BSE Sensex dropped 849.37 points or 1.04% to 80,786.54. The Nifty 50 index tumbled 255.70 points or 1.02% to 24,712.05.

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