India’s equity benchmarks are expected to open little changed on Wednesday, with investor caution deepening after U.S. President Donald Trump threatened steep tariffs on pharma imports, a key export segment for India.
The Gift Nifty futures were trading at 25,586.5 points as of 8:15 a.m. IST, indicating that the Nifty 50 will open near Monday’s close of 25,522.5.
On Tuesday, Trump threatened a 200% tariff on pharma products, a 50% duty on copper and levies on semiconductors, broadening his trade war that has rattled markets worldwide.
The U.S. accounts for nearly a third of India’s pharma exports, which rose 16% to about $9 billion in the last fiscal year, according to government-backed trade body Pharmexcil.
Major stock indexes mostly inched lower, while U.S. copper prices jumped to a record high following Trump’s threats. MSCI’s broadest index for Asia-Pacific stocks outside Japan lost 0.5%.
The U.S. will “pretty soon” charge a 10% tariff on imports from the BRICS countries, Trump said, putting India, which is a part of the bloc, in the crosshairs.
As the uncertainty deepens, investors are pinning their hopes on a potential U.S.-India trade deal.
Meanwhile, Trump extended the tariff deadline to August 1 from July 9, allowing more time for negotiations.
Financials led India’s equity benchmarks higher on Tuesday even as tariff jitters capped overall gains. Kotak Mahindra Bank had led the rise after posting a strong quarterly business update.
Investors are awaiting Tata Consultancy Services’ first-quarter earnings, scheduled for release on Thursday.
