Markets Pause After Six-Day Rally Amid Trump Tariff Concerns

Indian equities retreated from record highs as investors digested potential economic fallout from former U.S. President Donald Trump's proposed trade policies. The Nifty 50 slipped 0.44% to 24,974.30 while the Sensex fell 0.39% to 81,679.84 in early trading, snapping a six-session winning streak.

Market strategists attribute the pullback to growing anxiety about Trump's floated 50% tariffs, with Geojit Investments warning the measures could significantly impact India's growth trajectory. The defensive shift comes ahead of Federal Reserve Chair Jerome Powell's closely-watched Jackson Hole speech, creating a risk-off tone across Asian markets.

Sector performance remained mixed, with defense contractor Bharat Electronics Limited gaining 1.1% as investors favored perceived SAFE havens. The rupee weakened 11 paise against the dollar, reflecting broader emerging market pressures.