FX.co ★ Sensex Slides After RBI Decision, Trump Tariff Threats

The BSE Sensex dropped by 207 points or 0.3%, reaching 80,481 during early trading on Wednesday. This marks its lowest position since May 8. The decline followed the Reserve Bank of India's (RBI) decision to maintain the key interest rate at 5.5%, while adjusting its inflation forecast for FY2025–26 from 3.7% down to 3.1%. Meanwhile, market participants closely monitored US trade policy developments after President Trump issued a threat on Tuesday to "very substantially" increase tariffs on Indian goods within 24 hours, critiquing India's ongoing purchases of Russian oil. The market saw most sectors trading lower, with pharmaceuticals and healthcare experiencing the most significant declines, each shedding 1.3% amid Trump's proposal to impose tariffs up to 250% on pharmaceutical imports. Investors were also looking forward to the first-quarter earnings reports from Bajaj Auto, Hero MotoCorp, and Divi’s Laboratories, expected later in the day, along with Chinese trade data anticipated on Thursday. Major decliners included IndusInd Bank (-1.9%), Tech Mahindra (-1.6%), Infosys (-1.6%), and Bajaj Finance (-1.5%).