Indian equity benchmark -- Nifty -- ended Monday’s trading session in a negative terrain ahead of the upcoming RBI monetary policy. Index made a gap down opening, as traders were cautious with the exchange data showing that foreign institutional investors (FIIs) offloaded equities worth Rs 1,327.09 crore in the capital markets on a net basis on Saturday. Traders were cautious after U.S. President Donald Trump levied tariffs on Canada, Mexico and China over the weekend. On Saturday, Trump signed an order implementing a 25% tariff on imports from Mexico and Canada, and a 10% tariff on goods from China.
In afternoon session, index continued to trade lower, as sentiments remained cautious after India’s current account deficit (CAD) is likely to widen from 1.0 per cent of GDP in FY25 to 1.3 per cent in FY26 due to export headwinds from U.S. trade policies. Despite this, a strong services trade balance, steady remittances, and lower crude oil prices will help prevent a sharp increase in the deficit. In last leg of trade, index came off from day’s low point, but ended with over half a percent cut.
