The benchmark indices, Sensex and Nifty 50, are likely to open lower on Friday and extend their losing streak after US President Donald Trump announced fresh tariffs overnight on pharmaceuticals, furniture, and heavy trucks, dragging global sentiment.

Asian markets slipped, while Wall Street closed in the red overnight as stronger US economic data raised doubts over the Federal Reserve’s rate cut outlook.

However, on Thursday, Indian equities tumbled for the fifth consecutive session, with the Nifty 50 sliding below the 24,900 mark.

Domestic Market Recap

On Thursday, Indian indices closed in the red:

• Sensex slumped by 555.97 points (0.68%) to close at 81,159.68
• Nifty 50 moved down by 166.05 points (0.66%) to settle at 24,890.85

Gift Nifty

Gift Nifty was trading near 24,902, around 66 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Overnight Wall Street Performance

The US stocks closed lower on Thursday as economic data fueled uncertainty over the Federal Reserve’s interest rate cut outlook.

• The Dow Jones Industrial Average slumped by 173.96 points (0.38%) to close at 45,947.32.
• S&P 500 down by 33.25 points (0.50%), ending at 6,604.72.
• The Nasdaq Composite was trading lower by 113.16 points (0.50%), finishing at 22,384.70.

Gold Prices

Gold prices declined as stronger-than-expected US economic data boosted the dollar and clouded the outlook for Fed rate cuts.

• Spot gold was trading 0.2% lower at $3,741.71/oz
• US gold futures were trading flat at $3,772.20

Overnight Major Global Events Driving Sentiment

1. Trump Tariffs: President Donald Trump announced he will impose import taxes starting 1 October, 100% on pharmaceutical drugs, 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks.
2. US Jobless Claims: Fewer Americans filed new applications for unemployment benefits last week. Initial state unemployment claims dropped by 14,000 to a seasonally adjusted 218,000 for the week ended 20 September, compared with economists’ forecast of 235,000.
3. US Durable Goods Orders: US orders for core capital goods unexpectedly rose in August. Non-defence capital goods orders excluding aircraft increased 0.6% after July’s downwardly revised 0.8% jump. Economists had expected a 0.1% decline. Overall durable goods orders, items meant to last at least three years, from toasters to aircraft, rebounded 2.9% in August after sliding 2.7% in July.
4. US GDP: The US economy expanded faster than previously estimated in Q2. GDP grew at an annualised 3.8% pace, the strongest since Q3 2023, compared with the earlier 3.3% estimate. In contrast, GDP contracted 0.6% in Q1, slightly more than the earlier 0.5% decline.

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