GIFT Nifty declines as Trump threatens higher tariffs on India over Russian oil trade

GIFT Nifty declines as Trump threatens higher tariffs on India over Russian oil trade

GIFT Nifty is an early indicator of how the Nifty 50 index could open, based on trading in the GIFT City-based exchange in Gujarat.

GIFT Nifty dropped 99 points to 24,685 on Monday, August 4, soon after US President Donald Trump accused India of profiting from Russia’s war in Ukraine and warned of a substantial hike in tariffs on Indian goods entering the US.

GIFT Nifty is an early indicator of how the Nifty 50 index could open, based on trading in the GIFT City-based exchange in Gujarat.

“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,” Trump wrote in a social media post. “They don’t care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA.”

Trump did not specify the exact tariff measures he would impose.

India faces tariffs of 25% as per Trump’s August 1 executive order, but it did not mention the “penalty” that Trump had said India will have to pay because of its purchases of Russian military equipment and energy.

Stocks to watch

Trump’s remarks could weigh on shares of oil marketing companies such as Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL), and Hindustan Petroleum Corp (HPCL) due to potential cost implications.

Reliance Industries (RIL), a major refiner and exporter, and ONGC Videsh (OVL), with exposure to Russian energy assets, may also come under investor scrutiny.