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Nifty 50 could open with some gains; Trump levies steep reciprocal tariff rates on several countries
(08:28, 01 Aug 2025)

GIFT Nifty:

GIFT Nifty August 2025 futures were currently trading 38.50 points (or 0.16%) higher, suggesting a flat to mildly positive opening for the Nifty 50 today.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 5,588.91 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 6,372.71 crore in the Indian equity market on 31 July 2025, provisional data showed.

According to public data, FPIs have sold shares worth Rs 47,666.68 crore in the cash market during July 2025. This follows their cash purchase of shares worth Rs 7,488.98 crore in June 2024.

Global Markets:

Asian markets traded lower on Friday after U.S. President Donald Trump announced sweeping new tariffs on American trading partners, citing trade imbalances and national security concerns.

The decision, signed late Thursday, is set to go into effect on 7 August and covers a wide range of goods from 69 countries and the 27-member European Union.

Countries facing the highest rates include Syria at 41 percent, Switzerland at 39 percent, Laos and Myanmar at 40 percent, Iraq and Serbia at 35 percent, and Libya and Algeria at 30 percent. Others like Taiwan, India, and Vietnam fall in the 20 to 25 percent range.

The European Union reached a deal under which goods with existing duty rates above 15 percent are exempt, while others will see adjusted levies. For countries not listed, a default rate of 10 percent will apply.

Meanwhile, Japan's unemployment rate was unchanged at 2.5% in June, from the previous month, government data released Friday showed. There were 122 job openings for every 100 job seekers in June, lower than the 124 openings for every 100 job seekers in the previous month.

Stocks on Wall Street closed lower on Thursday, with the S&P 500 posting its third consecutive losing session.

The broad market index fell 0.37% to settle at 6,339.39, while the Nasdaq Composite edged down 0.03% to 21,122.45. The Dow Jones Industrial Average declined 330.30 points, or 0.74%, closing at 44,130.98.

Domestic Market:

The headline equity indices ended slightly lower on Thursday, snapping a two-day winning run, as markets reacted sharply to an unexpected tariff announcement from the United States and volatility from the monthly derivatives expiry.

Indices opened on a weak note and saw a knee-jerk sell-off, but a mid-session recovery in heavyweight stocks helped the indices briefly turn positive. However, renewed selling pressure in the final hour pushed benchmarks back into negative territory. The Nifty 50 slipped below 24,800, dragged down by weakness in energy, metal, and pharma stocks. However, FMCG bucked the weak market trend.

Sentiment turned risk-averse after U.S. President Donald Trump announced a 25% tariff on Indian goods, effective August 1, along with an additional, unspecified penalty reportedly linked to India's procurement from Russia.

The S&P BSE Sensex declined 296.28 points or 0.36% to 81,185.58. The Nifty 50 index lost 86.70 points or 0.35% to 24,768.35.

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