India’s benchmarks set to open lower tracking Asian peers

(Reuters) – India’s benchmark indexes are likely to open lower on Thursday, tracking other Asian peers as uncertainty about U.S. tariff measures and worries over their inflationary impact dented investor sentiment.

The GIFT Nifty futures were trading at 22,887.50 as of 08:10 a.m. IST, indicating that blue-chip Nifty 50 will open below Wednesday’s closing level of 22,932.90.

Asian markets fell in early trades, with the MSCI Asia ex Japan down 1%, as investors fretted over U.S. President Donald Trump’s tariff threats.

Japan’s Nikkei 225 fell 1.6% while Hong Kong’s Hang Seng lost 2%. The South Korean Kospi was down 0.6%.

Trump said on Tuesday he will introduce tariffs of 25% and above on autos, pharmaceuticals and semiconductors.

Among Asian countries, South Korea and Japan have the highest U.S. exposure to auto exports while India has extensive pharma exposure, according to HSBC Global Research.

Trump’s tariff threats could add to the risk-off sentiment in the markets, according to brokerages.

Meanwhile, the minutes of the U.S. Federal Reserve’s January policy meeting showed the central bank officials were also concerned about the potential impact of Trump’s tariff policies on inflation, signalling the likelihood of higher rates in the U.S. for longer.

Higher rates in the U.S. make emerging markets such as India unattractive for foreign investors.

Foreign portfolio investors (FPIs) have sold about $12.31 billion worth of equities so far in 2025, as per provisional data. On Wednesday, they sold shares worth 18.81 billion rupees ($216.5 million).

Meanwhile, domestic institutional investors (DIIs) have bought shares worth $14.09 billion so far, including $225.3 million on Wednesday.

Indian benchmark indexes are down more than 3% in 2025 and as much as 13% from their record highs hit in late September.

The broader mid-cap and small-cap indexes are down 17% and 21%, respectively, from their record highs.

Concerns over slowing earnings growth, lofty valuations and uncertain U.S. trade policies have fuelled a selling in equities.

** National Stock Exchange of India will introduce derivatives contracts on Tata Technologies and Indian Renewable Energy Development Agency from February 28

** Mahindra & Mahindra says Mahindra Group and Anduril Partner will develop autonomous maritime systems and advanced AI-enabled Counter-Unmanned Aerial Systems technologies.

** Bharat Forge says its arm Kalyani Strategic Systems has signed a letter of intent with the U.S.-based AM General to supply advanced artillery systems.

** Goldman Sachs (Singapore) PTE buys stake in BSE on Wednesday at 5,504.42 rupees apiece.

(Reporting by Vivek Kumar M in Bengaluru; Editing by Janane Venkatraman)