India's benchmarks seen flat; US tariff threats, growth worries in focus 12/3/2025

 India's benchmarks seen flat; US tariff threats, growth worries in focus

Refinitiv1 min read

NIFTY  +0.17%

AIRTELPP.E1  +2.60%

TCS  −0.40%

INFY1!  −2.07%

India's equity benchmark indexes are likely to open flat on Wednesday as investors remain anxious about the latest tariff threats from U.S. President Donald Trump and its potential impact on the world's largest economy.

The GIFT Nifty futures (GIFc1) were trading at 22,555 as of 8:11 a.m. IST, indicating that the blue-chip Nifty 50 

NIFTY will likely open near Tuesday's close of 22,497.90.

Trump pledged to double tariffs on Canadian steel and aluminum after Indian markets closed on Tuesday, but reversed course in just hours, in rapid-fire moves that scrambled global financial markets.

Worries over the impact of U.S. tariffs spooked markets earlier in the week after Trump refused to predict whether the U.S. could face a recession.

They also offset optimism arising out of Ukraine's readiness to accept a month-long ceasefire.

Other Asian markets traded marginally higher, while Wall Street equities fell overnight.

India's blue-chip indexes are down about 15% from the record high hit in September 2024, while the broader midcaps and small caps are down more than 20% from lifetime highs.

Foreign portfolio investors (FPIs) have sold shares worth over $16 billion in India so far in 2025, with 28.24 billion rupees ($323.8 million) on Tuesday, as per provisional data.

Investors wait for U.S. and India's inflation data for February later in the day. The data will set the course for future rate actions in both countries.

India's inflation likely eased below 4% in February for the first time in six months on moderating food price rises, according to a Reuters poll.

STOCKS TO WATCH

** Elon Musk's Star link signs a deal with telecoms company Bharti Airtel 

AIRTELPP.E1  to bring Star link's internet services to India

** Tata Consultancy Services 

TCS  announces acquisition of commercial real estate firm Darshita Southern India Happy Homes for 22.50 billion rupees

** U.S.-listed shares of Infosys 

INFY1!  fall 2.42% after Morgan Stanley downgraded the IT firm to "equal-weight" from "overweight" citing concerns over slowing growth

** IndusInd Bank's 

INDUSINDBK CEO says private lender will report profit in March quarter, after stock plummeted 27% on Tuesday on discrepancies in derivatives accounting; NSE bans futures and options on stock to prevent excessive speculation