Indian Markets Brace for Volatility Amid US Tariff Hike and Derivatives Expiry

Indian equities face a turbulent session as Gift Nifty signals a 200-point gap-down opening, with the benchmark Nifty poised to test support NEAR 24,650. The dual headwinds of heightened US tariffs and monthly derivatives expiry are expected to amplify market swings, particularly in export-sensitive sectors.

"The 25% additional US tariff effectively doubles duties on Indian imports to 50%, creating immediate dislocation in textiles, gems, and agricultural stocks," said Puneet Singhania of Master Trust Group. While pharmaceutical and electronics shares demonstrate relative resilience, chemical exporters face acute pricing pressures in their largest overseas market.

ICRA's Aditi Nayar notes the global trade uncertainty may further delay India's private capex recovery, though strategic sectors like semiconductors and electric vehicles continue attracting investment. Market participants anticipate continued volatility as traders adjust positions ahead of the August contract settlement on the NSE.