Indian stock market opened lower on Thursday, August 28, owing to the additional 25 per cent tariffs on India by the Donald Trump-led US administration that took effect on Wednesday, when the stock market was closed on account of Ganesh Chaturthi.
Sensex dropped 508.16 points to 80,278.38 in early trade, while Nifty fell 157.35 points to 24,554.70 in early trade, according to figures mentioned in a PTI news agency report.
Gift Nifty futures were trading at 24,665.5 points as of 7:31 am on Thursday, signalling that the Nifty 50 will open below Tuesday's close of 24,712.05.
On Tuesday, August 27, Nifty and Sensex both fell about one per cent, their sharpest single-day percentage drop in three months, according to figures in a Reuters report.
Trump's 25 per cent additional tariffs on Indian imports over Russian oil purchase kicked in on Wednesday, August 27, officially doubling the total India duties to 50 per cent. An existing 25 per cent tariff on goods going from India to the US was already in place.
Also Read | Who gets hit, who escapes Trump's 50% tariffs on India: Details on sectors affected
Analysts say the tariff measure by Donald Trump on Indian goods, which affect some sectors like gems and jewellery and seafood the most, have already sparked a sharp selloff.
{{/usCountry}}Analysts say the tariff measure by Donald Trump on Indian goods, which affect some sectors like gems and jewellery and seafood the most, have already sparked a sharp selloff.
{{/usCountry}}"This measure has already triggered a sharp selloff and is expected to maintain pressure on the market in the near-term," Reuters quoted Santosh Meena, head of research at Swastika Investmart.
India's export-oriented sectors such as textiles and apparel, gems and jewellery, seafood, chemicals and auto component sectors are exposed to a hard hit by the Donald Trump tariffs.
However, sectors like pharmaceuticals, smartphones and energy have been spared, for now.