Trump's Tariff Threat: Indian Markets Face Oil Price Volatility and Geopolitical Uncertainty
Indian equities are set to be driven by key trends including crude oil and geopolitical developments this week, according to analysts.
The US President Donald Trump has signed into law the Sanctioning Russia and Iran Act, which gives his administration expanded powers to impose tariffs of up to 100 per cent on imports from major buyers of Russian oil and gas, including India.
India's significant purchases of Russian crude make it a potential target for these tariffs. The law requires President Trump to impose duties of up to 100 per cent on goods imported from countries that are the top five purchasers of Russian crude oil or natural gas by total volume during the 12 months preceding enactment.
Ajit Mishra, SVP, Research at Religare Broking, noted that globally, updates on US-Iran tensions and movement in crude oil prices will remain key market drivers. He added that flash PMI figures across India, the US, and the Eurozone, along with upcoming US labour market reports will be closely tracked.
The listing of the NSE on September 24 is also seen as a major landmark event for Indian equities, said Santosh Meena, Head of Research at Swastika Investmart Ltd. The initial public offering of the National Stock Exchange of India (NSE) was fully subscribed on the second day of bidding.