Equities in India fell 433 points, or 0.5%, to 80,353 in early trade on Thursday, hitting their lowest level in two weeks as markets resumed after a local holiday on Wednesday. Traders grew increasingly concerned about the economic impact of new US tariffs after Washington imposed an additional 25% duty on Indian goods in response to India’s continued purchase of Russian oil, bringing total tariffs to 50%. The BSE Sensex declined for the second straight session, following a nearly 1% drop on Tuesday—its sharpest single-day fall in three months. Investors also awaited the release of Q2 GDP data on Friday, with markets expecting growth to slow to 6.6%, down from 7.4% in Q1. However, expectations surrounding GST reform plans helped limit the downside. Almost all sectors traded in the red, with technology, healthcare, and pharmaceuticals falling between 1.1% and 1.4%. Among the biggest laggards were HCL Tech (-2.5%), Sun Pharmaceuticals (-2.0%), TCS (-1.5%), and Tata Motors (-1.5%).
US stock futures slipped on Thursday after Nvidia declined following its latest earnings report. The chipmaker fell about 3% in extended trading despite beating second-quarter earnings and revenue forecasts, as data center sales once again came in below expectations. Nvidia also revealed that it recorded no sales of its H20 chips to China during the quarter and excluded any potential shipments from its guidance. The weakness spread across the semiconductor sector, with AMD (-1.4%), Broadcom (-1.1%) and TSMC (-1.6%) also retreating. Still, analysts stressed that the artificial intelligence rally remains intact and suggested investors view the dip as a buying opportunity. In regular trading on Wednesday, major indexes advanced, with the Dow up 0.32%, the Nasdaq Composite gaining 0.21% and the S&P 500 adding 0.24% to close at a fresh record high.
