Indian Stock Market Suffers Sharp Decline Amid Rising Fears of US Tariff Hike

India’s stock market experienced its steepest one-day drop in four months as investors reacted to growing concerns about a potential increase in US tariffs on Indian exports. Major exporters, industrial companies, and heavyweight stocks were hit hard. Sensex and Nifty 50 both dropped nearly 1%, with individual stocks seeing even sharper losses.

Trump’s Tariff Threats Rattle the Markets The panic stems from reports that the United States is considering massive new tariffs of up to 500% on Indian goods if India does not reduce its imports of Russian oil. The US has already imposed tariffs of up to 50% and repeatedly warned New Delhi about worsening trade relations if it continues oil trade with Russia.

Who Got Hit the Hardest? Reliance, Exporters, Industry Reliance Industries, one of India’s largest Russian oil importers, saw its shares drop 2.2%, as investors reevaluated the company’s exposure to US sanctions and volatile oil supply lines. Other major losers included: Gokaldas Exports: –8.5%Pearl Global Industries: –7.9%Apex Frozen Foods: –7.8%Avanti Feeds: –8.6% These companies, highly dependent on US export markets, bore the brunt of the investor selloff. All major sectors ended the session in the red — from metals to tech.

Market Performance Snapshot Sensex: –0.93%Nifty 50: –1.04%Weekly losses: –1.8% (Sensex), –1.7% (Nifty)Metal sector: –3.4% (worst day in 9 months)Oil & gas (NIFOILGAS): –2.8%IT index: –2.0%Larsen & Toubro: –3.1%BHEL: –10.5%

Rupee Weakens, Foreign Capital Flees The Indian rupee closed weaker on Thursday as caution dominated the market. Foreign investors have withdrawn over $900 million from Indian equities since the beginning of the year, despite a record $19 billion in inflows in 2022.

Analysts: Markets on Edge as US Action Looms Anita Gandhi, Head of Institutional Trading at Arihant Capital Markets, noted: “Markets don’t like uncertainty. The fears of a tariff hike are very real — and they could materialize at any moment.”

Tariffs Up to 500%? US Applies Pressure Over Russian Oil According to reports, the United States is seriously considering a drastic hike in tariffs if India continues to import oil from Russia. India remains a key buyer of Russian crude, and Reliance Industries, owned by Mukesh Ambani, is among the biggest importers. While data shows that Russian oil imports declined in December, the drop was not driven by policy. Analysts believe the decrease followed US sanctions on firms like Lukoil and Rosneft, which impacted Reliance’s sourcing rather than government-led restrictions. India has reportedly reached out to the White House, seeking to negotiate lower tariffs, offering a reduction in Russian oil ties in return. But so far, no breakthrough has been announced.

#India , #stockmarket , #marketcrash , #russia , #oil

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