Mumbai, India - November 26, 2024: The Indian rupee faced downward pressure following U.S. President-elect Donald Trump's announcement of tariffs on imports from Canada, Mexico, and China. The rupee is expected to open at 84.32-84.33 to the U.S. dollar, a decline from 84.2875 in the previous session. The dollar index rose by 0.4% to 107.3 in response to Trump's comments.
Trump stated he would implement a 25% tariff on all products from Canada and Mexico, and an additional 10% tariff on Chinese goods, citing concerns over drug trafficking. The offshore Chinese yuan fell to a four-month low, with the Mexican peso and Canadian dollar also weakening against the dollar.
Market analysts predict that the Reserve Bank of India will intervene to limit further declines in the rupee, which recently hit an all-time low of 84.5075. Despite a brief calming effect from Trump's nomination of Scott Bessent as Treasury Secretary, ongoing protectionist rhetoric is expected to maintain market uncertainty.
Indian Stock Market - November 26, 2024: Indian shares are poised for a subdued opening after a nearly 4% gain over the last two sessions. The Gift Nifty futures indicated an opening near Monday's close of 24,221.9. Analysts noted that foreign investors ended a 38-session selling streak, contributing to the recent market rally.
The Adani Group is under scrutiny following the indictment of key executives by U.S. authorities for alleged bribery, leading to a significant decline in market value. Fitch Ratings placed several Adani bonds on a negative watch, prompting TotalEnergies to halt investments in the group.
In corporate news, Hindustan Unilever approved the de-merger of its ice-cream business, while KEC International secured new orders worth approximately $132 million. HDFC Life is investigating a data breach incident involving customer information.