Indian people face turbulence in financial markets amid the escalation of American tariffs

The Indian stock market registered a particularly weak performance, with investors withdrawing from local assets in response to threats of tariff increases from the United States. The scenario is challenging for Indian people who depend on the capital market, with the Sensex falling 0.93% and the Nifty 50 losing 1.04% in a single session. Over the past seven days, both indices have accumulated respective declines of 1.8% and 1.7%, reflecting widespread pessimism.

Indian exporters at the center of the market storm

The 16 main sectors of the Indian economy closed the trading session in negative territory, driven by systematic liquidation of investments. Exporting companies were particularly affected. Indian people involved in the seafood industry suffered significant losses, with Apex Frozen dropping 7.8% and Avanti Feeds declining 8.6%.

In the textile segment, the situation was no different. Gokaldas Exports and Pearl Global Industries saw their stock prices plummet around 8.5% and 7.9%, respectively. Both companies rely heavily on the American market for their revenue, making them vulnerable to regulatory uncertainty. The metals sector recorded its worst performance in nine months, with a decline of 3.4%, while the oil and gas segment (NIFOILGAS) contracted by 2.8%.

Reliance Industries among the biggest losers

Reliance Industries, a giant in the energy and refining industry, slowed down 2.2% as investors assessed the implications of the geopolitical scenario. The company faces uncertainties related to crude oil import plans, especially after recent US government decisions. The information technology index also declined by 2.0%.

Larsen & Toubro fell 3.1%, while BHEL suffered a sharp drop of 10.5%. The Indian rupee also closed lower, reflecting market participants’ caution.

The tariff factor and foreign investment

The current situation is amplified by the tariff uncertainty scenario. International investors with exposure to the Indian stock market have sold a total of US$ 900 million since the beginning of the fiscal year, marking a stark contrast to the record US$ 19 billion liquidated in 2022.

As observed by market professionals, there is widespread discomfort among participants. The possible implementation of American protectionist measures is at the center of concerns, making Indian people more cautious about economic prospects.

Russian oil and the threat of tariffs up to 500%

India positions itself as the second-largest buyer of Russian crude oil, a fact that has fueled trade tensions with the United States. The US administration is studying the imposition of tariffs that could reach 500% if the Asian country continues importing Russian commodities.

Previously, India had been warned about possible tariff increases and attempted to negotiate a reduction. Currently, it faces tariffs of up to 50% on its exports to the US. Diplomatic efforts included arguments about reducing trade ties with Moscow, but the scenario remains tense and full of uncertainties.

Reliance Industries, under Mukesh Ambani’s leadership, has been significant in Russian imports, adding complexity to the situation of Indian people in the international trade context.