Key Highlights
- Threats of Trump tariffs, increased geopolitical uncertainty, and currency volatility have kept FPIs away from Indian equities, and these factors have compounded in the initial two weeks of the year.
- US President Donald Trump earlier this week threatened fresh tariffs on India in the case of non-suspension of the purchase of Russian oil.
- A bipartisan US bill proposing tariffs of up to 500% on countries buying Russian oil has received Trump’s backing and awaits congressional approval.
- The US has imposed base 25% tariffs on India along with an additional 25% tariffs due to India's purchase of Russian oil, which Washington sees as helping Russia fund the war in Ukraine.
- This has further dented investor sentiment as it creates fresh hurdles for the already elusive India-US trade deal.
