The Indian stock market resumed its losing streak in Wednesday’s trade after a brief rally in the previous session, as investors mulled the implications of U.S. President Donald Trump’s trade regime, while weak Chinese inflation data also weighed on sentiment.
The Nifty 50 ended the session with a decline of 0.18% at 25,476 points, while the S&P BSE Sensex fell 0.16% to 83,538 points. The broader markets, however, closed mixed, with the Nifty Midcap slipping 0.12%, while the Nifty Smallcap 100 index ended the session with a gain of 0.6%.
Uncertainty over the potential trade deal between India and the U.S., along with Trump’s fresh tariff warning letters to 14 nations, led investors to turn risk averse. While the White House has indicated that a trade deal with India is in its final stages, Trump has also warned of an extra 10% tariff on countries, including India, aligning with what he described as the “anti-American policies of BRICS,” as the bloc convened for a summit in Brazil.
Trump on Tuesday also announced a 50% levy on copper imports and hinted that further sector-specific tariffs will soon be announced. He threatened Tuesday afternoon to impose up to 200% tariffs on pharmaceuticals imported into the U.S. but said that he will “give people about a year or a year and a half” until the duties go into effect.
In a Truth Social post, Trump said that there would be no change or extensions on the raft of duties he announced on those nations, which include Japan and South Korea. He also signed an executive order extending the reciprocal tariff deadline to August 1 from July 9, giving negotiators more time to reach agreements.
Trump initially announced the higher reciprocal rates on over 50 trading partners on April 2 but lowered those rates temporarily to 10% for 90 days, allowing time for negotiations, which are expected to end today.
