Nifty futures fall, oil rises after US tariffs on India over Russian energy

Nifty futures dip and Brent crude gains after US imposes an extra 25% tariff on Indian goods over Russian energy imports, with analysts calling it a negotiation tactic

The Nifty futures fell and crude prices rose after US President Donald Trump on Wednesday issued an executive order imposing an additional 25 per cent tariff on goods from India over its purchase of Russian energy.

 

The Gift Nifty futures declined up to 0.9 per cent before recovering and were trading at 24,535 — down 95.5 points or 0.39 per cent — as of 8:45 pm. Oil prices climbed, with Brent crude trading at $69.2, up 0.85 per cent. The benchmark Nifty ended Wednesday’s session at 24,574, down 75 points or 0.3 per cent. The latest tariffs are in addition to the 25 per cent tariffs already in place.

 

 

“The recovery of Gift Nifty indicates that the markets are likely to take Trump’s announcement in their stride and are not shocked. Additional tariffs are more of a theatre and negotiation tool than an actual imposition,” said UR Bhat, co-founder, Alphaniti Fintech.

 

“We expect the markets to fall by 1–2 per cent in a knee-jerk reaction, but most would expect a resolution. Impact on GDP will be around 30–40 basis points if these tariffs are sustained for a year,” said Dhiraj Relli, managing director and chief executive officer, HDFC Securities.

 

Trump on Tuesday had accused India of fuelling Russia’s war machine. The US President had earlier escalated trade tensions by unilaterally imposing a 25 per cent tariff after months of negotiations. The additional tariffs come ahead of an August 8 deadline that Trump gave Russia to reach a truce with Ukraine. He has also threatened secondary tariffs on buyers of Russian energy.