Indian Markets Eye Recovery Amid U.S. Tariff Concerns and RBI 25 Bps Repo Rate Cut

Following three days of significant declines on Dalal Street, analysts are cautiously optimistic about a potential market recovery. Nikunj Dalmia highlighted that while the U.S. tariff war initiated by Donald Trump may impact India, the country is in a relatively strong position to withstand the effects. The Reserve Bank of India (RBI) is set to announce its monetary policy, with speculation surrounding whether it will prioritize rate cuts amid the ongoing trade tensions. Recent discussions suggest that tariffs may outweigh the benefits of rate cuts, raising questions about the future direction of India's economy and investor sentiment. As the RBI prepares for its meeting, market participants are closely monitoring global cues and the implications of U.S. tariffs on sectors such as pharmaceuticals, which are expected to face challenges due to increased costs.