Domestic equity benchmarks declined on Tuesday as investors stayed cautious after U.S. President Donald Trump’s renewed threat of harsh tariffs on goods from India over the country’s purchases of Russian oil and ahead of the local central bank policy decision.
Trump on Monday threatened to impose higher tariffs on goods imported from India, prompting New Delhi to call the move “unjustified” and pledge to safeguard its economic interests, further straining ties between the two nations.
Meanwhile, investors are waiting for the Reserve Bank of India’s policy decision on Wednesday, in which it is expected to hold its key rate at 5.50%. However, calls for a rate cut have also risen after the U.S. slapped 25% tariffs on goods from India.
With global volatility and geopolitical noise likely to persist, analysts expect the Nifty to consolidate between 24,600–24,800 in the near term. Eyes will be on the RBI policy, U.S. macro data, and global trade developments for further direction.
According to Kranthi Bathini, the current RBI’s policy committee is pro-growth and inflation has been cooling in India for the past few months. “Even if there’s a rate cut tomorrow, don’t be surpised,” suggested Bathini.
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