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Indian Markets Slide to Three-Month Lows After Trump Tariff

The RBI’s decision to hold repo rates at 5.50% has done little to buoy investor confidence ahead of key inflation data releases.

Overview

  • President Donald Trump’s 50% tariff on Indian imports has triggered a six-week downturn in benchmark indexes.
  • The Sensex fell 1.01% to 79,857.79 and the Nifty declined 1.20% to 24,363.30 over the week ending August 8.
  • Foreign institutional investors withdrew nearly Rs 18,000 crore in August, intensifying offshore selling pressure.
  • Investors are bracing for July’s CPI on August 12 and WPI on August 14 for fresh monetary policy cues.
  • The final tranche of Q1 earnings from major corporates and stalled US-India trade talks, alongside global events like the US-China tariff truce deadline and a Trump–Putin summit, will influence market direction.