Sensex, Nifty decline on concerns over US tariff imposition
Mumbai, Jul 31 (PTI): Equity benchmark indices Sensex and Nifty ended lower on Thursday after US President Donald Trump announced the imposition of a 25 per cent tariff on all goods coming from India starting August 1 and an unspecified penalty for buying Russian crude oil and military equipment.
Despite the weak start, the indices staged a sharp recovery, but selling pressure re-emerged towards the fag of the session. However, buying in some heavyweight stocks restricted the downward trend, traders said.
Halting its two-day rally, the 30-share BSE index declined 296.28 points, or 0.36 per cent, to settle at 81,185.58 after recovering some lost ground during the afternoon trade. During the morning session, the gauge tanked 786.71 points, or 0.96 per cent, to 80,695.15.
As many as 2,418 stocks declined, while 1,598 advanced and 137 remained unchanged on the BSE.
The 50-share NSE Nifty dropped 86.70 points or 0.35 per cent to 24,768.35.
"Following a turbulent start driven by fresh tariff threats, the Indian market started on a pessimistic note. However, the domestic market attempted a strong recovery, but by the end of the day, it closed with marginal losses on a monthly expiry day.
"Investors gravitated toward domestically oriented, non-discretionary players, especially FMCG, which offered attractive valuations, demand outlook and relative insulation from tariff risks. In contrast, oil & gas stocks were the worst hit due to US warnings over Indian energy imports," Vinod Nair, Head of Research, Geojit Investments Limited, said.
The announcement is being seen as a pressure tactic to get New Delhi to agree to demands made by the US, which has, in recent days, got favourable trade deals with major partners like Japan, the UK and the European Union.
The penalty was announced as India has made large purchases of oil and military equipment from Russia. India is the first country to face a penalty for Russian imports.
From the Sensex firms, Tata Steel, Sun Pharma, Reliance Industries, Adani Ports, NTPC and Asian Paints were among the biggest laggards.
However, FMCG major Hindustan Unilever Ltd (HUL) jumped 3.48 per cent after the firm reported a 5.97 per cent rise in its consolidated net profit to Rs 2,768 crore for the June quarter of FY26, helped by gains from a re-estimation of taxes paid in the previous year.
Eternal, ITC, Kotak Mahindra Bank and Power Grid were also among the gainers.
"Markets witnessed volatile swings on the monthly expiry day and ended marginally lower amid mixed cues. The surprise tariff announcement by the US President on India initially triggered a knee-jerk reaction; however, a gradual recovery in heavyweight stocks across sectors helped the index briefly turn positive. Selling pressure resurfaced in the final hours, once again putting bulls on the back foot. As a result, the Nifty closed at 24,768.35, down 0.35 per cent," Ajit Mishra - SVP, Research, Religare Broking Ltd, said.
The BSE smallcap gauge dropped 0.85 per cent and the midcap index dipped 0.70 per cent.
Among BSE sectoral indices, telecommunication tanked 1.80 per cent, oil & gas (1.47 per cent), energy (1.40 per cent), metal (1.18 per cent), commodities (1.03 per cent), and consumer durables (0.78 per cent).
FMCG and services were the gainers.
In Asian markets, South Korea's Kospi, Shanghai's SSE Composite index and Hong Kong's Hang Seng settled lower, while Japan's Nikkei 225 index ended in positive territory.
European markets were trading on a mixed note in mid-session trade.
The US markets ended mostly lower on Wednesday.
Global oil benchmark Brent crude dipped 0.74 per cent to USD 72.70 per barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 850.04 crore on Wednesday, according to exchange data.
In the previous session, the Sensex climbed 143.91 points or 0.18 per cent to settle at 81,481.86. The Nifty rose 33.95 points or 0.14 per cent to 24,855.05.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Russian President Putin says India, Russia collaboration not directed against anyone
New Delhi (PTI): The India-Russia collaboration is not directed against any country and it is solely aimed at safeguarding the national interests of the two sides, Russian President Vladimir Putin has said against the backdrop of Washington's aggressive approach towards New Delhi and Moscow.
In the context of India's energy ties with Russia, Putin said certain "actors" dislike New Delhi's growing role in international markets in view of its close relations with Moscow and these elements are aiming to constrain India's influence for political reasons by imposing "artificial obstacles".
In an interview to India Today news channel that was released on Thursday evening, the Russian president, referring to Western sanctions against Moscow, said his country's energy cooperation with New Delhi largely "remains unaffected".
Putin landed in New Delhi this evening on a two-day visit to hold summit talks with Prime Minister Narendra Modi.
ALSO READ: PM Modi presents copy of Gita in Russian to Putin
His trip comes at a time India-US relations are going through possibly the worst phase in the last two decades after Washington imposed a whopping 50 per cent tariff on Indian goods, including 25 per cent levies for New Delhi's procurement of Russian crude oil.
"Neither me nor Prime Minister Modi, despite certain external pressure we face, have never approached our collaboration to work against someone," the Russian president said in response to a question on Washington's aggressive approach.
"President Trump has his own agenda, his own goals, whereas we focus on ours -- not against anyone, but rather aimed at safeguarding our respective interests, India's and Russia's interests," he said.
Rejecting Washington's objection to India procuring crude oil from Russia, Putin said if the US has the right to buy Russian fuel, why "shouldn't India have the same privilege".
"As for India's purchase of energy resources from Russia, I would like to note and have already mentioned this once, the US itself still buys nuclear fuel from us for its own nuclear power plants," Putin said.
The Russian president also responded to a question on India lowering procurement of crude oil from Russia in view of Western sanctions on Moscow.
ALSO READ: Russian president Putin arrives in Delhi on 2-day visit
"Well, there is a certain decline in overall trade turnover during the first nine months of this year. This is just a minor adjustment. Overall, our trade turnover stands almost at the same level as before," he said.
"I can't give you exact monthly figures right now, but trade in petroleum products and crude oil, as well as the production of petroleum products for consumers of oil, Russian oil, is running smoothly in India," he said.
Putin also said that India cannot be treated the way it was several decades back.
"Prime Minister Modi is not someone who succumbs to pressure easily. The Indian people can certainly take pride in their leader. This is absolutely obvious," he said.
"His stance is unwavering and straightforward, without being confrontational. Our goal is not to provoke conflict; rather, we aim to protect our lawful rights. India does the same," he said.
On the Ukraine conflict, Putin said he believed the US is actively seeking a solution to this problem. "I am absolutely certain, with no doubt at all, he (Trump) sincerely aims for a peaceful resolution."
Putin said Trump genuinely wants to end the hostilities and prevent further loss of lives. "But there could also be political interests tied to ending the confrontation between Russia and Ukraine, or economic motives too."
On bilateral trade, Putin said over 90 per cent of "our transactions are already conducted in national currencies".
"While some complications arise due to the presence of numerous intermediaries, there are also solutions," he said.
The Russian president also complimented PM Modi's leadership.
"Our collaborative endeavours with Prime Minister Modi carry significant weight because they transcend our mutual ties," he said.
"Given its direct relevance to both nations, ensuring stability in key areas of engagement is crucial, as it helps secure the fulfilment of our objectives. Prime Minister Modi sets very challenging tasks for the country --and for himself in the first place, then for the administration, and eventually for the nation," he said.
The Russian president did not give a direct reply to a question on if India was looking at procuring additional batches of S-400 missile systems.
"India stands out as one of our reliable and privileged partners in this area. We are not merely selling something to India and India isn't merely buying something from us in the sphere of defence and security.
"It is a different level, a different quality of relations we have with India, and we value this. We see how India values this relationship too," he said.
Putin said Russia is not simply selling defence technology to India but it is sharing it with the country.
"It is a very rare thing to see in the sphere of military-technical cooperation. It speaks to the level of trust between the two countries and the level of trust between the two peoples.
"We have a broad portfolio indeed, including naval construction, rocket and missile engineering, and aircraft engineering," he added.
