The Indian stock market remained under pressure for the second straight session on Thursday, August 28, amid growing concerns over former U.S. President Donald Trump’s proposed 50% tariff on Indian imports. The Nifty 50 index slipped close to 1% during the session but managed to stay above the key 24,500 level, touching an intraday low of 24,507. Despite the decline, the absence of a sharp sell-off suggests that the market may already be factoring in the tariff impact and could be nearing a bottom. A positive update on the trade front might spark a recovery.
Market experts believe that the current weakness reflects expectations that the proposed tariffs are temporary and part of Trump’s negotiation tactics. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that investors largely see the 50% tariff as short-term and anticipate a resolution over the additional 25% duties.
Still, uncertainty remains. If Trump extends tariffs to critical sectors like pharmaceuticals and IT, the economic impact could be far more damaging. For now, the targeted sectors are textiles, gems and jewellery, and select food products, while pharma, IT, semiconductors, and electronics remain unaffected.