D-Street set to tumble as US tariffs hit markets

Indian shares are set to open lower on Thursday after U.S. President Donald Trump imposed a 26% reciprocal tariff on imports from the South Asian nation.

GIFT Nifty on the NSE IX traded lower by 301 points, or 1.28 per cent, at 23,129.50, signaling that Dalal Street was headed for gap-down start on Thursday.

Trump's tariff announcement on India on Wednesday was part of his plan to impose a 10% baseline tariff on all trade partners, with higher duties on dozens of other countries, including 34% on China.

Other Asian markets plunged as investors fled to the safety of bonds, gold and the yen as the unexpectedly steep tariffs threatened to upend trade and supply chains.

"The U.S. tariffs are on the higher side and clearly could trigger an immediate fall in Indian markets on Thursday," said Saurabh Jain, assistant vice president of research of retail equities at SMC Global.

The Indian rupee declined in the non-deliverable forward market on Thursday after the fresh tariffs were announced.

Rupee stoked by US tariffs
The Indian rupee is expected to weaken at the opening on Thursday, following a drop in Asian equity and currency markets after U.S. President Donald Trump announced broad-based tariffs.

Trump imposed a 26% tariff on imports from India, effective from April 9, as part of his broader plan to apply duties on all U.S. imports.

The non-deliverable forward market suggests that the rupee will open at 85.70-85.75 against the U.S. dollar, compared to 85.4975 in the previous session.

Bond yields tick lower
Indian government bond yields are expected to drop at the open on Thursday, following a decline in U.S. Treasury yields after President Donald Trump introduced new reciprocal tariffs. Investors are also awaiting a debt purchase by the domestic central bank.

The benchmark 10-year bond yield is projected to range between 6.45% and 6.50%, according to a trader at a private bank, compared to the previous close of 6.4806%, the lowest since January 3, 2022.

Global stocks in shocker
Global financial markets experienced a broad selloff after President Donald Trump's attempt to reshape the global trading system turned out to be more aggressive than anticipated. Stocks plummeted, Treasuries surged, and the yen strengthened as concerned investors sought safe-haven assets.

• S&P 500 futures fell 2.7% as of 11:03 a.m. Tokyo time
• Nikkei 225 futures (OSE) fell 2.5%
• Japan’s Topix fell 2.8%
• Australia’s S&P/ASX 200 fell 1.2%
• Hong Kong’s Hang Seng fell 1.4%
• The Shanghai Composite was little changed
• Euro Stoxx 50 futures fell 1.9%

Gold hits record peak
Gold hit a record high on Thursday, as nervous investors rushed towards safe-haven assets after U.S. President Donald Trump announced more aggressive-than-anticipated tariffs against major trading partners, widening the global trade war.

Spot gold was up 0.4% at $3,145.93 an ounce, as of 0018 GMT, after hitting an all-time high of $3,167.57 earlier in the session.

Oil sinks nearly 3%
Oil prices dropped $2 on Thursday after U.S. President Donald Trump announced reciprocal tariffs on trading partners, stoking concerns that a global trade war may dampen demand for crude.

Brent futures fell $1.97, or 2.63%, to $72.98 a barrel by 0033 GMT. U.S. West Texas Intermediate crude futures were down $1.98, or 2.76%, to $69.73.