Indian Shares Seen Lower At Open; IT Stocks In Focus Amid AI Worries

Indian shares look set to open on a subdued note Tuesday amid much uncertainty over the status of global trade deals.

Media reports suggest that U.S. President Donald Trump’s proposed tariffs would be imposed under Section 232 of the Trade Expansion Act of 1962, separate from the recently announced 15 percent global tariff.

With Trump launching a fresh attack on the Supreme Court ruling and using alternative legal statutes to maintain tariffs, market participants lack clarity about how global trade will look.

Many analysts say the Supreme Court’s tariff ruling will open a new chapter in the trade saga, not end it.

IT stocks may face come under heavy selling pressure today after their U.S.-listed American Depositary Receipts (ADRs) tumbled 3-5 percent in the New York trading session overnight on concerns around artificial intelligence disruption.

Benchmark indexes Sensex and Nifty jumped around 0.6 percent each on Monday amid relief over the U.S. Supreme Court ruling on tariffs. The rupee gained 7 paise to settle at 90.87 against the U.S. dollar.

Foreign investors net bought shares worth Rs 3,483 crore on Monday, marking their highest buying since February 3, while domestic institutional investors offloaded shares worth Rs 1,292 crore, according to provisional exchange data.

Asian stocks were mixed this morning while the dollar edged higher after two days of losses. Gold fell nearly 1 percent due to profit taking after climbing toward $5,250 an ounce earlier.

Oil prices were marginally lower after Trump said his preference was for a nuclear deal with Iran before talks this week.

Overnight, U.S. stocks fell sharply as President Trump ramped up his new tariffs in light of the Supreme Court’s tariff ruling on Friday, striking down his sweeping reciprocal taxes on imports from around the world.

Beyond a 15 percent tariff that could last for up to 150 days, unless Congress extends it further, Trump warned he could end up imposing tariffs in a “much more powerful and obnoxious way”.

“Any Country that wants to ‘play games’ with the ridiculous supreme court decision, especially those that have ‘Ripped Off’ the U.S.A. for years, and even decades, will be met with a much higher Tariff, and worse, than that which they just recently agreed to. BUYER BEWARE!!!” Trump said.

“During the next short number of months, the Trump Administration will determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of Making America Great Again – GREATER THAN EVER BEFORE!!!” Trump said.

Trump also claimed that he does not need to go back to Congress for approval.
The Dow slumped 1.7 percent to reach its lowest closing level in a month, while the tech-heavy Nasdaq Composite lost 1.1 percent and the S&P 500 shed 1 percent.

European stocks ended lower on Monday as U.S. President Trump threatened ‘obnoxious’ tariffs and the European Parliament’s main political groups said they’ll suspend legislative work on approving the U.S. trade deal, raising new concerns over the outlook for global trade.

The pan-European Stoxx Europe 600 dropped half a percent. The German DAX lost 1.1 percent, France’s CAC 40 slipped 0.2 percent and the U.K.’s FTSE 100 finished marginally lower.

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