Stock indices Sensex and Nifty are forecasted to open with minor gains.
The U.S. tariff deadline on China is due to expire on Tuesday, but the focus is also on the ongoing trade tensions between the U.S. and India. The Trump administration imposed a 25% tariff on Indian goods in early August 2025, and plans for an additional 25% tariff have put pressure on the trade aspect of the relationship.
India is diplomatically pressuring the U.S. to address Pakistan’s military aid and terrorism support as part of its broader foreign policy security approach. The relationship with the U.S. is strategically important but under strain due to these trade tensions, impacting trade negotiations and economic ties.
The tariff escalation schedule indicates ongoing trade negotiations and potential further economic friction. There is no publicly noted upcoming deadline explicitly mentioned, but the tariff escalation schedule functions as a near-term timeline affecting diplomatic and trade discussions.
The Standing Committee on External Affairs will be briefed today on the latest developments in India's foreign policy, including the ongoing trade negotiations with the U.S.
Meanwhile, the tech-heavy Nasdaq Composite climbed 1 percent to reach a new record closing high for a second day, while the S&P 500 gained 0.8 percent and the Dow added half a percent. The focus remains on upcoming Chinese retail sales and industrial output data, as well as U.S. CPI data to be released on Tuesday, with analysts expecting the core inflation to rise at an annual pace of 3.0 percent.
Elsewhere, Asian stocks were mostly higher this morning, with Japanese markets closed for a holiday. The pan European STOXX 600 edged up by 0.2 percent, but the German DAX and the U.K.'s FTSE 100 both finished marginally lower. European stocks ended mixed on Friday, with defense stocks underperforming following reports of a potential U.S.-Russia deal regarding the war in Ukraine.
India remains 'committed to engaging constructively' through 'dialogue and mutual respect', signalling its intention to maintain a positive relationship with the U.S. despite the ongoing trade tensions. The country continues to manage regional instability cautiously while asserting a nationalist and sovereign diplomatic posture that sometimes challenges established international norms.
President Trump warned U.S. courts against striking down his tariff policy, as the tech giant Apple committed to invest an additional $100 billion in U.S. manufacturing. France's CAC 40 rose 0.4 percent, while crude oil prices traded lower ahead of U.S. President Trump’s scheduled meeting with Russian President Vladimir V. Putin.
- The trade tensions between the U.S. and India have extended to the realm of finance, with both nations grappling with the economic implications of tariffs.
- The ongoing trade negotiations with the U.S. pose a significant challenge for India's business sector, especially those relying on technology for innovation and growth.
