A 50% tariff imposed by the US on India led to a 1% decline in the Sensex and Nifty on Thursday. However, domestic stock markets opened in the green on Friday. Investors are closely watching the Reliance Industries AGM scheduled for today, although the company's shares saw a slight dip in early trading.
Stock Market Today: Following the US's imposition of a total 50% tariff on Indian exports, Indian stock markets closed with a significant decline on Thursday, with the Sensex dropping 705 points and the Nifty falling 211 points. However, markets opened in positive territory on Friday, the last trading day of the week. Meanwhile, investors' attention is fixed on the Reliance Industries AGM on August 29, where key issues like the Jio IPO, FMCG expansion, and clean energy plans are expected to be discussed.
Why the Market Crashed on Thursday
Indian markets witnessed a substantial fall on Thursday. The announcement of US tariffs directly impacted investor sentiment. The Sensex closed 705.97 points, or 0.87 percent, down at 80,080.57. During the trading session, it fell further to a low of 80,013.02. Similarly, the Nifty closed 211.15 points, or 0.85 percent, lower at 24,500.90. This decline was attributed to the continuous outflow of foreign capital and news of the US tariffs.
Impact of US Tariffs
The US officially announced a 50 percent tariff on products originating from India. This includes an additional 25 percent duty on top of the existing 25 percent. The tariff has been effective since August 27. The US government stated that this move was taken due to India's continuous procurement of crude oil from Russia, which it considers a threat to its own interests. The impact was directly visible in the Indian market, making investors cautious.
Eyes on Reliance AGM
Today is significant for investors as the Annual General Meeting (AGM) of the country's largest company, Reliance Industries, is being held. The company's Chairman, Mukesh Ambani, is expected to make several major announcements at this meeting. Updates are anticipated on the Jio IPO, expansion of the FMCG business, and new plans in the clean energy sector. Investors are keenly awaiting how Reliance outlines its future strategy.
However, Reliance Industries shares saw weakness in early trading. At the time of reporting, the company's stock was trading 0.22 percent down at Rs 1383. Investor volatility persists as they await the announcements from the AGM.
Rupee and Foreign Capital Status
The rupee closed marginally ber against the US dollar at 87.63 on Thursday. Foreign institutional investors continued their capital outflow, further increasing pressure on the market. Domestic investors remain cautious, closely monitoring global cues.
Sectors Showing Gains and Losses
Today, all Nifty 50 indices traded in positive territory, except for Nifty Auto and Nifty Grosect 15. Buying in banking, IT, and metal stocks provided support to the market. Conversely, auto and select consumer stocks showed pressure.
