The Indian stock market resumed its losing streak in Tuesday’s session but recovered most of its early losses to end with minimal cuts, as investor sentiment turned cautious after U.S. President Donald Trump, in an overnight social media post, threatened New Delhi with significantly steeper tariffs, though he did not specify the level.
The Nifty 50 closed with a 0.30% decline at 24,649 points, while the S&P BSE Sensex ended 0.42% lower at 80,681 points. Broader markets also closed weaker, with the Nifty Midcap 100 and Nifty Smallcap 100 indices each losing up to 0.34%.
Most of the sectors that witnessed a sharp turnaround in the previous trading session were sold off sharply, with Oil & Gas, Pharma, and FMCG emerging as the biggest laggards, while auto index managed to end with decent gains.
Trump’s repeated tariff threats are driven by India’s strong ties with Russia and its position as the largest importer of Russian crude. He accused India of profiting from the Russia-Ukraine conflict by reselling discounted Russian oil on global markets.
Responding to the U.S. president’s remarks, India’s external affairs ministry stated that India began importing oil from Russia only after “traditional supplies” were diverted to Europe following the Russia-Ukraine war in 2022.
The ministry also called out the EU and the U.S., saying, “It is revealing that the very nations criticizing India are themselves indulging in trade with Russia.”
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