News

The Indian stock market fell sharply in Tuesday's session, with benchmark indices losing over 1% after U.S. President Donald Trump’s administration confirmed an additional 25% tariff on Indian imports, a penalty announced earlier this month by Washington for India’s continued purchase of Russian oil. 

The Nifty 50 closed the session with a steep loss of 255 points, or 1.02%, at 24,712, while the S&P BSE Sensex declined 1.05% to 80,779. Broader markets also witnessed heavy selling, with the Nifty Midcap 100 falling 1.62% and the Nifty Smallcap 100 plunging over 2%.

The 25% penalty will come into effect from August 27, taking total tariffs on Indian imports of up to 50%, the highest among U.S. trading partners. This has raised concerns among Dalal Street investors that it could weigh on India’s economic growth at a time when the country is trying to recover from the slowdown of the last fiscal year.

Export-oriented stocks bore the brunt of the sell-off, particularly textiles, chemicals, and gems & jewellery, shrimp, whose top line is heavily dependent on the U.S. market.

(more to come)

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Download the Mint app and read premium stories

Log in to our website to save your bookmarks. It'll just take a moment.