Mumbai: Markets are expected to remain volatile during the week as there remains clarity among Dalal Street investors regarding US tariffs on goods exported to the world’s largest economy. While most market players feel that the tariff rates on Indian goods will not be much different from before, some believe that the new tariff structure will put India at par with many other competing countries, which is a favorable position compared to before the US Supreme Court invalidated President Donald Trump’s tariffs on Friday evening.
Late on Friday night, following the US SC order and subsequent Trump announcement that he will impose 10% tariff on all goods (for 150 days), the GIFT Nifty index closed at 25,886 points, up 320 points or 1.25%. Traded till late night on all trading days on NSE’s GIFT City platform, it usually gives an indication about how the Indian market will open the next day, provided there are no developments late at night or early in the morning.After GIFT Nifty closed, Trump changed the tariff structure to 15% on Saturday. Adding to the confusion, Neal Katyal, the US lawyer who won the tariff case against Trump, said the new tariff rate is also invalid under US laws.However, fund managers reassured nervous investors. According to Nilesh Shah, MD, Kotak Mahindra Mutual Fund, the Street’s expectation is that the US will use various provisions of the law to keep the tariffs virtually unchanged. “Any changes will be short-term and hence are not likely to have any significant impact on the market direction,” Shah said late Saturday night.Sameer Arora, founder of Singapore-based Helios Capital, which also has a domestic fund house by the same name, said on X that as far as India is concerned, there is nothing wrong in the 15% rate of tariff.
