Sensex, Nifty Set To Extend Losses As Trump Slaps 100% Tariff On Pharma

(RTTNews) - Indian shares look set to extend recent losses on Friday after U.S. President Donald Trump announced a new round of tariffs, saying the United States will impose a 100 percent tariff on imported branded drugs, 25 percent tariff on imports of all heavy-duty trucks and 50 percent tariff on kitchen cabinets.

Trump also said he would start charging a 30 percent tariff on upholstered furniture next week.

Benchmark indexes Sensex and Nifty both fell around 0.7 percent on Thursday to extend losses for a fifth straight session amid mixed signals on U.S.-India trade talks, concerns surrounding H-1B visa fee hike and uncertainty about the outlook for U.S. interest rates.

The rupee closed nearly flat at 88.6650 against the U.S. dollar due to likely central bank intervention amid continued foreign outflows.

Foreign investors net sold shares worth Rs 4,995 crore on Thursday, while domestic institutional investors bought shares to the tune of Rs. 5,103 crore, as per provisional data.

Asian markets were mostly lower this morning after the S&P 500 ended lower for a third straight session on Thursday, marking the longest slide in a month on worries about lofty valuations.

Investors also awaited a key U.S. inflation due later in the day and weighed the threat of a U.S. government shutdown.

The dollar held overnight gains and short-end Treasury yields rose after data showed U.S GDP grew at the fastest pace in nearly two years in the second quarter.

Gold traded lower but headed for its sixth weekly gain. Oil edged higher and was on track for its biggest weekly gain in 3 months as Ukraine's attacks on Russia's energy infrastructure pushed Moscow to cut fuel exports until the end of the year.

U.S. stocks fell for a third straight session overnight as hopes for aggressive Fed rate cuts faded and concerns prevailed about the outlook for the artificial intelligence trade.

Strong economic data, including an unexpected drop in jobless claims, a sharp upgrade in Q2 GDP growth and a rebound in demand for U.S. durable goods after two months of declines, helped limit overall losses to some extent.

The tech-heavy Nasdaq Composite and the S&P 500 both fell by half a percent while the Dow gave up 0.4 percent.

European stocks closed broadly lower on Thursday after the U.S. opened new national security investigations into the import of personal protective equipment, medical items, robotics, and industrial machinery.

The pan European Stoxx 600 fell 0.7 percent. The German DAX dipped 0.6 percent, while France's CAC 40 and the U.K.'s FTSE 100 both ended down around 0.4 percent.