Let’s start with the big global story of the day—Donald Trump, who is set to take over as the 47th President of the United States on the 20th of January 2025, has announced plans to impose additional tariffs on China, Canada, and Mexico. In a series of posts, Trump stated that, to curb the supply of drugs into the US, his administration will levy an additional 10 percent tariff on Chinese goods and 25 percent on products from Canada and Mexico. These additional tariffs will come into effect on the 20th of January and will remain in place until the supply of drugs decreases.
Asian markets traded mixed on Tuesday as investors weighed the impact of Trump’s tariff announcements. Japan’s Nikkei dropped by nearly one per cent, while South Korea’s Kospi declined by half a per cent. On the other hand, China’s CSI 300 edged up by two-tenths of a per cent, and Hong Kong’s Hang Seng also managed to close higher, though with only a negligible uptick.
Back home, Indian equities erased their opening gains to end the day lower. The Sensex dipped by a tenth of a per cent to close just above 80,000. The Nifty also saw a minor decline, dropping 27 points. The broader market reflected a similar picture, with the Nifty Midcap Index closing with a slight uptick, while the Nifty Bank Index dropped marginally. Among the fifty constituents of the Nifty, 27 declined in Tuesday’s trade, while 23 advanced. Shriram Finance emerged as the star performer, gaining over three per cent. Meanwhile, Adani Group stocks—Adani Enterprises and Adani Ports—were the key laggards.
Speaking of Adani Group stocks, it wasn’t just the Nifty constituents from the group that slipped on Tuesday—all Adani Group stocks ended the day lower following actions by rating agencies. Ratings agency Moody’s revised its outlook on seven Adani Group companies to negative, citing the indictment of Adani Group Chairman Gautam Adani and other group executives by the US Justice Department. Earlier in the day, another ratings agency, Fitch, also announced negative rating actions on certain Adani Group entities.
Staying with stock-specific action, Ola Electric gained over five per cent in Tuesday’s trade. The EV maker was in focus as it launched new electric scooters aimed at gig economy workers. Starting at 39,999 rupees, the models under the Ola Gig range will compete directly with offerings from players like Yulu. Additionally, these scooters are powered by the PowerPod, a portable battery pack that also functions as a home inverter.
More news from new-age companies—Zomato CEO Deepinder Goyal has voluntarily extended his salary waiver of 3.5 crore rupees until the 31st of March 2026. Goyal had originally announced in FY21 that he would forgo his salary for 36 months. However, he has now decided to continue without his annual remuneration for an additional two years. Although he won’t draw a salary, the Zomato chief will remain eligible for variable pay, which will be determined by the board at a later date. Shares of Zomato closed the day up by two-and-a-half per cent.