Trump's 50% Tariffs, India-Russia MoU, Q1 Results And Other Market Cues To Influence D-Street Action Today

Equity benchmark indices ended in the red for the second straight session on August 6 as traders turned cautious following US President Donald Trump’s statement that tariffs on Indian goods could be raised “within the next 24 hours” due to India’s ongoing imports of Russian oil.

On the domestic front, the Reserve Bank of India (RBI) kept the repo rate unchanged at 5.5 per cent. The central bank maintained its FY26 gross domestic product (GDP) growth forecast at 6.5 per cent and cut its inflation projection to 3.1 per cent from 3.7 per cent.

After opening in the red, the benchmark indices remained under pressure for most of the session. The indices attempted a mild recovery around mid-day, but the rebound was short-lived. Both indices eventually slipped below their previous day’s lows and ended with modest losses.

The Sensex closed 166.26 points, or 0.21 per cent, lower at 80,543.99. The Nifty 50 ended at 24,574.20, falling 75.35 points or 0.31 per cent.

Trump's 50% Tariffs

US President Donald Trump has signed an executive order to impose an additional 25 per cent tariff on goods imported from India. This comes after India was already facing a 25 per cent tariff following the August 1 announcement. With this, the total tariff on Indian goods now stands at 50 per cent.

The additional tariffs, as Trump says, has been imposed for maintaining ties with Russia, especially buying oil and weapons.

India called the move “unfair, unjustified and unreasonable.” Officials said they are reviewing the impact and may take appropriate countermeasures.

Trump’s 100% Tariffs On Semiconductors

The United States will impose a tariff of around 100 per cent on semiconductor chips imported from countries that are not producing in America or planning to do so, Trump said on August 6.

“It will apply to all chips and semiconductors coming into the United States,” Trump told reporters in the Oval Office, adding that companies committed to manufacturing in the US or in the process of doing so will be exempt.

India Signs MoU with Russia

India and Russia have signed a protocol to strengthen cooperation in aluminium, fertilisers, railways, and mining technology during the 11th session of the Working Group on Modernisation & Industrial Cooperation.

Key focus areas included collaboration in aerospace, science and technology, with plans to set up a modern wind tunnel facility. Both sides also discussed joint efforts in small aircraft engines, carbon fibre tech, additive manufacturing, 3D printing, rare earth extraction, and underground coal gasification.

BoE MPC Meeting

The Bank of England’s (BoE) Monetary Policy Committee (MPC) will announce its decision on interest rates today, August 7. Most economists expect the committee to cut the policy rate to 4 per cent.

Inflation in the United Kingdom rose to 3.6 per cent in June, significantly above BoE’s 2 per cent target.

Markets and businesses will be watching the MPC’s statement for guidance on the Bank’s future policy path. The expected rate cut is unlikely to directly impact Indian markets. However, a weaker pound or improved global risk sentiment could lead to increased foreign inflows into emerging markets like India.

Q1 Results Today

As many as 271 companies listed on the Bombay Stock Exchange (BSE) are set to report their quarterly results for the period ended June 30, 2025 (Q1 FY26). Market participants will keep a close watch on earnings from key names such as Titan Company, Page Industries, Linde India, Biocon, Godrej Consumer Products, Hindustan Petroleum Corporation Ltd (HPCL), and Cummins India, among others.

Market participants will also be reacting to the earnings released post-market hours the previous day.

IPO Watch

The initial public offerings (IPOs) of JSW Cement and All Time Plastics will open for public subscription today, August 7.

Meanwhile, the subscription windows for bidding in Knowledge Realty Trust IPO and Highway Infrastructure IPO will close today.

US Markets

US stock markets ended in the green on the back of strong corporate earnings.

The Dow Jones rose 0.18 per cent to 44,193.12, while the S&P 500 closed 0.73 per cent higher at 6,345.06. The tech-heavy Nasdaq Composite jumped 1.21 per cent to end at 21,169.42.

Asian Markets

Asian stock market indices were trading higher in early trade today. Japan's Nikkei 225 was trading higher by 0.70 per cent, while China's SSE Composite traded with modest gains of 0.12 per cent. The Hong Kong-based Hang Seng was up by 0.52 per cent and South Korea's Kospi too was up by 0.6 per cent.