The Indian equity benchmarks are likely to take cues from the latest round of tariffs announced by the United States President Donald Trump and flows from the foreign institutional investors (FIIs), analysts noted.
President Trump on Saturday announced hike in tariffs on all countries to 15% from 10%, which was imposed a day earlier.
Following a Supreme Court verdict against his earlier sweeping tariffs, Trump on Friday imposed a 10% tariff on all the countries, including India from February 24 for 150 days.
Commenting on the 10% tariff, the Indian government on Saturday said it is studying these and their implications.
“Based on a thorough, detailed, and complete review of the ridiculous, poorly written, and extraordinarily anti-American decision on Tariffs issued yesterday, after MANY months of contemplation, by the United States Supreme Court, please let this statement serve to represent that I, as President of the United States of America, will be, effective immediately, raising the 10 per cent Worldwide Tariff on Countries, many of which have been “ripping” the US off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level.
“During the next short number of months, the Trump Administration will determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of Making America Great Again,” he said in a social media post.
In a proclamation titled ‘Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems’ dated February 20, Trump said he is imposing, for a period of 150 days, a “temporary import surcharge of 10 per cent ad valorem” on articles imported into the US,” effective February 24.
Meanwhile, PTI citing sources reported that India and the US have decided to reschedule the proposed meeting of their chief negotiators, supposed to be held in Washington from Monday, to finalise the text for the interim trade pact.
FII flows
The foreign institutional investors have so far this month bought shares worth ₹16,912, data from National Securities Depository Limited showed.
On Friday, the FIIs sold shares worth ₹935 crore while domestic institutional investors bought shares worth ₹2,637 crore.
The Indian equity benchmarks resumed their upmove after a day’s pause in the previous session on Friday. The benchmarks opened on subdued note but staged recovery in late morning deals powered by gains in index heavyweights like Reliance Industries, Larsen & Toubro, NTPC, State Bank of India, Kotak Mahindra Bank, Hindustan Unilever and Axis Bank.
The SENSEX ended 317 points higher at 82,815 and NIFTY50 index advanced 117 points to close at 25,571.