Global Markets Jitter as Tariff Threat Looms

Persistent tariff concerns and selling pressure from foreign portfolio investors led to a dip in investor confidence on Friday, with key indices starting the day on a bearish note. The Nifty 50 index opened at 24,544.25, falling 51.90 points or 0.21 per cent, while the BSE Sensex commenced at 80,483.56, down 139.70 points or 0.17 per cent.

Market analysts remain cautious in anticipation of new tariff impacts and other geopolitical developments. Banking and Market Expert Ajay Bagga suggested markets may trend sideways, pending significant announcements over the coming days. The geopolitical landscape is dominated by recent trade wars and related tariffs, with US indications of potential secondary tariffs on China for purchasing Russian oil. Initial optimism sparked by reports of a Trump-Putin summit was dampened by renewed sanction talk against Russia.

The US markets remained static, awaiting clarity on various fronts including trade tariffs, Russia-Ukraine ceasefire developments, and Federal Reserve appointments. Christopher Waller is reportedly a leading candidate to replace Fed Chair Powell. Despite overall market hesitation, the Nifty Midcap 100 and Nifty Smallcap 100 indices showed resilience, while certain sectors, like Media, FMCG, and Auto, opened positively amid a largely pressured sectoral landscape.

Corporate attention turned to several companies, including State Bank of India and Tata Motors, set to release quarterly results today. Mixed trends were observed across Asian markets, with Japan's Nikkei 225 showing strong gains, while Hong Kong and South Korea indices trailed with losses.

(With inputs from agencies.)