Trump india tariff

Trump India tariff: Can the Indian stock market sustain against the sell-off storm?            

Trump India tariff: The Indian stock market declined following Trump's tariffs on July 31, 2025, with key indices showing significant drops

Trump India tariff: Following the selling pressure after the imposition of Trump's tariffs on India on 31st July 2025, the Indian stock market ended lower on Thursday and Friday sessions. The Nifty 50 index slipped from 24,855 to 24,565 levels, the BSE Sensex went down from 81,481 to 80,599 levels, while the Bank Nifty index corrected from 56,150 to 55,617 levels. The selling was across segments as the small-cap index slipped from 53,881 to 52,575 levels, and the mid-cap index went down from 46,102 to 45,155.

Trump India tariff: Following the selling pressure after the imposition of Trump's tariffs on India on 31st July 2025, the Indian stock market ended lower on Thursday and Friday sessions. The Nifty 50 index slipped from 24,855 to 24,565 levels, the BSE Sensex went down from 81,481 to 80,599 levels, while the Bank Nifty index corrected from 56,150 to 55,617 levels. The selling was across segments as the small-cap index slipped from 53,881 to 52,575 levels, and the mid-cap index went down from 46,102 to 45,155.

   

According to stock market experts, Dalal Street has witnessed selling post-imposition of Trump's tariff on India, but this selling failed to rattle the market sentiments as the key benchmark indices are sustaining above their crucial supports. They said that selling was expected as Trump's tariff would hit Indian exports by around $33 billion, but this won't have much impact on the Indian market sentiments.

Trump's tariff impact

On how Trump's tariff on India will impact New Delhi, Vinod Nair, Head of Research at Geojit Investments, said, "The US is India's largest export destination, contributing around 2.2% to the nation's GDP in 2024. As such, the 25% tariff is likely to exert pressure on the domestic economy. However, the effect is forecast to be limited based on the scope of the tariff in other EMs, as currently India has a small edge over key competitors like China. However, the tariff on other EMs has been reduced lately, like in Vietnam, Indonesia, and South Korea. It is expected to impact areas like Engineering, Pharma, Energy, Textile and Jewellery sectors more."

Pointing towards the key takeaways for the Indian economy after Trump's tariff on India, Prashant Tandon, Executive Director — Global Investments at Waterfield Advisors, said, "We appear to be entering an era of re-globalisation—characterised by strategic integration, regional blocs, and trusted partnerships. Diverging markets illustrate this rebalancing, not disintegration. Investors should anticipate greater dispersion across geographies and sectors. Potential opportunities for supply chain resilience and infrastructure may arise, domestic industrial leaders benefiting from supportive policies, and companies focused regionally or aligned geopolitically."