Sensex & Nifty fall as Trump hits India with 25% tariff, South Korea leads Asian markets' decline

In response to US President Donald Trump's 25 per cent tariff on India , Sensex and Nifty 50 opened in the red on Friday.

Within minutes of the opening of the trade, Sensex fell by more than 260 points and Nifty 50 fell by over 80 points.

Twelve of the sixteen major sectors declined at the open while the broader smallcaps and midcaps traded flat, as per Reuters.

ALSO READ: Trump's 25% tariff on India could drag down GDP growth by 50-60 basis points, say analysts

The response of Indian markets was in line with Asian markets that declined in response to Trump’s tariffs, with South Korean leading the decline.

South Korean shares fell by 3.2 per cent after Trump’s tariff rollout.

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In early reactions, Japan’s Nikkei dropped 0.4 per cent and Chinese blue chips stocks were flat and Hong Kong’s Hang Seng index eked out a small gain of 0.2 per cent. These declines were rather most even though much of the trading day is still to pass.

The modest decline is a result of markets’ belief that negotiations are still on and deals can still be struck for lower tariffs, according to Tony Sycamore, analyst at IG.

“At this point, the reaction in markets has been modest, and I think part of the reason for that is the recent trade deals with the EU, Japan, and South Korea have certainly helped to cushion the impact. The market now, I think, has probably taken the view that these trade tariff levels can be renegotiated, can be walked lower over the course of time,” said Sycamore.

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