Indian stock market may start weak today due to a decline in Gift Nifty and the new US tariff policy. Investors are advised to exercise caution.
Stock Market Today: The impact of global economic signals may be visible on the opening of the Indian stock market on Tuesday, July 8th. Gift Nifty futures were trading at 25,497 at 8 AM, down 19 points, indicating that the market might open flat or with a slight decline.
New US Trade Policy Increases Global Instability
US President Donald Trump has announced hefty tariffs on products imported from 14 countries. This policy could directly affect the economies and trade relations of Asian countries. Simultaneously, Trump has also indicated that a trade agreement with India could be reached soon, leading to mixed reactions among investors.
Tariff Percentage on Which Countries?
Under the new policy, goods sent to the US from Japan, South Korea, Malaysia, Kazakhstan, and Tunisia will be subject to a 25% tariff. Tariffs will be 32% on Indonesia, 35% on Bangladesh, and up to 36% on Cambodia and Thailand. The rate has reached 40% on goods coming from Laos and Myanmar. Additionally, a 30% tariff has also been announced on South Africa and Bosnia.
Decline in US Stock Markets
The US markets saw a direct impact of this trade policy. The Dow Jones fell 0.94%, while the S&P 500 declined 0.79% and the Nasdaq fell 0.92%. Additionally, there was a slight decline in Dow Futures and S&P Futures, which could affect Asian markets.
Mixed Performance in Asian Markets
Although there was some improvement in some Asian markets amidst the pressure of US policies. Japan's Nikkei 225 rose 0.21%, and South Korea's KOSPI Index was up 1.13%. Australia's ASX 200 Index rose 0.21%, while Hong Kong's Hang Seng Index also gained 0.17%. These figures suggest that the markets are currently trying to understand and adjust to the situation.
Activity Seen in the IPO Segment
Investors will also be keeping an eye on the IPO market today. The IPO of Travel Food Services is entering its second day on the mainboard today. The IPO of Meta Infotech is on its final day. In addition, it is the second day of the IPOs of Smarten Power Systems and Chemkart India, while the IPO of Glenn Industries will open today. All these IPOs may offer investors an opportunity for good listing gains.
