Global Stock Indices Latest News: Indian Indices Rebound Despite US Tariffs
Estimated reading time: 3 minutes
- Nifty 50 and Sensex Open Higher After Tariff-Driven Selloff
- Rebound Driven by Specific Sectors and Stocks
- Positive Market Breadth Across Indices
- US Tariffs and Market Volatility
- What to Watch Next
Contents
- Nifty 50 and Sensex Open Higher After Tariff-Driven Selloff
- Rebound Driven by Specific Sectors and Stocks
- Positive Market Breadth Across Indices
- US Tariffs and Market Volatility
- What to Watch Next
Nifty 50 and Sensex Open Higher After Tariff-Driven Selloff
At 03:45 AM UTC on August 29, 2025, India’s benchmark stock indices, the NSE Nifty 50 and the BSE Sensex, opened higher, rebounding from two days of declines. This upward movement occurred despite the ongoing uncertainty surrounding newly imposed US tariffs on Indian imports, which had previously weighed heavily on investor sentiment. The initial market reaction to the tariffs, implemented on August 27th, had been negative, fueling fears of retaliatory measures and further foreign portfolio investor (FPI) outflows. However, Friday’s opening suggested a degree of resilience within the Indian market.
Rebound Driven by Specific Sectors and Stocks
The rebound was primarily driven by strength in specific sectors and heavyweight stocks. Reliance Industries and HDFC Bank, two of India’s largest companies, led the gains, contributing significantly to the positive opening of both indices. Furthermore, comments from the US Treasury Secretary hinting at potential future tariff relief provided a mild positive catalyst, adding to the overall market optimism.
The Nifty 50 opened above 24,500, up 0.13% at 24,543 in early trading. Economic Times Live Blog The Sensex initially opened slightly lower at 80,010.83 (-0.09%), but quickly recovered, gaining over 150 points within the first hour of trading to trade in positive territory. Economic Times Live Blog This broad-based recovery was reflected in the performance of broader market indices. The Nifty Midcap100 and Nifty Smallcap100 saw gains of 0.09% and 0.22%, respectively, indicating a positive market breadth. Business Standard Live Updates
Positive Market Breadth Across Indices
Sector performance also painted a positive picture, with most major sectoral indices trading higher. The banking sector showed particularly strong performance, outperforming other sectors. The only exceptions were the Auto and Realty sectors, which showed minimal gains. Economic Times Live Blog This sector rotation suggests investors are focusing on sectors perceived as more resilient to the current economic headwinds and geopolitical uncertainty stemming from the new US tariffs.
US Tariffs and Market Volatility
The newly imposed 50% tariffs on certain Indian imports, effective August 27, 2025, are a significant factor driving market volatility and influencing investor sentiment. Times of India Business Standard The market’s reaction reflects a complex interplay of factors. While the tariffs represent a significant negative development, the strength in specific stocks and the hopes for government intervention to mitigate the negative impacts are counterbalancing these concerns. The possibility of future tariff relief, as hinted by the US Treasury Secretary, further contributed to the positive early market sentiment. Business Standard No major economic data releases influenced this period’s market movement.
What to Watch Next
- Further market reaction to the US tariffs:
- Government policy response:
- US Treasury Secretary’s statements:
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FAQ
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