The benchmark indices, Sensex and Nifty 50, are likely to open lower on Thursday after the US enforced an additional 25% tariff on Indian exports overnight, raising the total duty to 50%.

Asian markets traded mixed, while US stocks ended higher overnight, with the S&P 500 hitting an intra-day record high.

Indian markets remained closed on Wednesday, August 26, for Ganesh Chaturthi. However, on Tuesday, the Indian stock market fell sharply as broad-based sectoral selling wiped out nearly Rs 6 lakh crore of investor wealth in a single session.

Domestic Market Recap

On Tuesday, Indian indices closed in the red:

• Sensex crashed by 849.37 points (1.04%) to close at 80,786.54
• Nifty 50 moved down by 255.70 points (1.02%) to settle at 24,712.05

Gift Nifty

Gift Nifty was trading near 24,649, around 82 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Wall Street Performance

The US stock market closed higher on Wednesday, with the S&P 500 hitting an intraday record high.

• The Dow Jones Industrial Average surged by 147.16 points (0.32%) to close at 45,565.23.
• S&P 500 up by 15.46 points (0.24%), ending at 6,481.40.
• The Nasdaq Composite was trading higher by 45.87 points (0.21%), finishing at 21,590.14.

Crude Oil Prices

• Brent crude slumped by 0.53% to $67.69/barrel
• US West Texas Intermediate (WTI) crude was trading 0.59% lower at $63.77/barrel

Overnight Major Global Events Driving Sentiment

1. Trump Tariffs: The US administration’s additional tariffs on Indian exports came into effect on August 27. President Donald Trump had earlier signed an executive order imposing a 25% duty on Indian imports, citing India’s crude oil purchases from Russia. With this move, total US tariffs on Indian exports now stand at 50%.
2. US Federal Reserve: New York Fed President John Williams said that interest rates could fall at some point, but policymakers must review upcoming economic data before deciding on a potential cut at the September meeting.

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