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Prime Minister Modi began a two-day visit to Japan, promoting India-Japan tech cooperation
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The US imposed 50% tariffs on Indian imports including garments, footwear, and jewellery
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The Indian rupee hit a record low of 88.29 against the US dollar amid trade tensions
The week saw US applying 50% tariffs on Indian goods, rupee hitting record low against the greenback and Prime Minister Narendra Modi visiting Japan.
The market sentiment, which improved last week after the announcement of GST reforms, reversed as traders weighed the outlook for industries as the country faces high tariff from the US.
Here's a wrap of the top stories this week.
Modi Visits Japan
Prime Minister Narendra Modi started his two-day visit to Japan. He addressed the India-Japan Economic Forum in Tokyo.
"The technology of Japan and the talent of India can together lead the tech revolution of this century.... India-Japan have signed an agreement on Joint Credit Mechanism for cooperation on clean fuel and green future...," he said in his speech.
Modi also met Japan's former prime minister, and Japan and India Association Chairperson Yoshihide Suga.
US Applies 50% Tariffs On Indian Goods Import
The US applied a 50% tariff on Indian goods imports from Aug 27. An unexpected move as most people were hoping that the US may back out in the end. Washington's move has escalated trade tension between India and the US.
The elevated tariff is applied on products from India, including garments, footwear, gems and jewellery, sporting goods, furniture and chemicals. These levels are among the highest Washington has imposed globally, comparable to rates applied to Brazil and China, reported Reuters.
Rupee Hits Record Low Against US Dollar
The Indian rupee breached the psychologically crucial level of 88 against the greenback on Friday. As per market participants, the Indian unit was let loose by the Reserve Bank of India in the backdrop of trade tensions.
The Indian unit slumped 66 paise to a record low of 88.29 against the US dollar.
GDP Growth At 7.8%, Highest In Five Quarters
India's gross domestic product growth came in at 7.8% in the April-June period, this is the sharpest GDP growth in the last five quarters and significantly higher than estimate of 6.7%, according to economists polled by Bloomberg.
In the fourth quarter of the last financial year, the GDP had grown by 7.4%, whereas the same stood at 6.5% in the first quarter of fiscal 2025.
Ganesh Chaturthi
The Ganesh Chaturthi festival, which celebrates the birth of Lord Ganesha is being celebrated from Wednesday to Anant Chaturdashi on Sept. 6.
Nifty, Sensex Snap Two-Week Winning Streak; RIL Hits Four-Month Low
The NSE Nifty 50 and BSE Sensex snapped a two-week winning streak as tariff tensions roiled the market sentiment. The indices have also declined for three days in a row as Reliance Industries emerged as the biggest dragger.
Reliance Industries share price hit four-month low after it announced existing shareholders cannot get anything in upcoming Jio IPO.
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