Trump’s 50% Tariff Shock: Will Markets Survive the Double Whammy?
Markets brace for impact as Trump's 50% tariff bombshell drops. No soft landings here—just raw economic shockwaves.
### The Tariff Tango: Who Bleeds First?
Trade wars aren't chess matches—they're demolition derbies. When the world's largest economy slams a 50% barrier on imports, supply chains scream before stocks do.
### Crypto's Hedge Play Goes Mainstream
Bitcoin whales are licking their lips. Traditional markets hate uncertainty—but decentralized assets feast on chaos. Watch for capital floods into BTC as tariffs trigger 'digital gold' FOMO.
Wall Street's crying over spilled tariffs? Please. These are the same geniuses who still think 2% inflation is 'transitory.' Buckle up for the only free market left—the one they can't regulate.
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Analyst views
Emkay Global Financial, in a note, said that the US imposed an effective 50% tariff on India via an executive order. This may not be a done deal, though, as a 21-day off-ramp potentially leaves the door open for negotiations. “As it stands, this could bring exports from affected sectors (textiles/jewellery/auto ancillaries) to a standstill and hurt some of India’s labour-intensive sectors. We, however, see the broader economy staying resilient and remain convinced of a 2HFY26 consumption-led recovery. We WOULD look through any near-term volatility caused by this and buy a substantial dip (of more than 5%),” the domestic brokerage said.
Dhiraj Relli, MD & CEO, HDFC Securities, said: “We expect the markets to fall by 1-2% in knee-jerk reaction, but most would expect a resolution of the same. Impact on GDP will be around 30-40 bps if these tariffs are sustained for a year.”
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Stock to buy today: Tube Investments of India (₹2,969.25)
Derivatives market mood
Meanwhile, trading in F&O markets signals a cautious stance of traders.
Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, said the derivatives landscape continues to reflect a cautious stance, with call writers significantly outnumbering put writers. The 24,700 strike has seen aggressive call writing, with open interest swelling to 1.51 crore contracts—cementing it as a strong resistance zone. In contrast, the highest put open interest lies at the 24,500 strike, with 87.99 lakh contracts, reinforcing it as immediate support. “Notably, put writers have started migrating to lower strikes, hinting at eroding bullish confidence. Concurrently, the surge in call writing at higher levels indicates consistent supply pressure,” he said, adding that the Put-Call Ratio (PCR) has sharply declined from 0.72 to 0.60, highlighting growing bearish sentiment and a clear dominance of call sellers
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Volatility still in check
India VIX rose marginally by 2.11% to close at 11.96. Despite upcoming macro triggers, volatility remains subdued and anchored NEAR the 11 mark — suggesting that the broader market is currently pricing in consolidation rather than a steep correction. This implies that while caution prevails, panic has not yet taken hold, Dhameja added.
Published on August 7, 2025
