As the August 27 deadline for US secondary tariffs of 25 per cent falls this week over Russian oil purchase, analysts and global reports say that a total of 50 per cent tariff is unlikely to significantly impact India’s growth due to a robust domestic demand.

While labour-intensive textiles and gems and jewellery segment are expected to see a moderate impact, pharmaceuticals, smartphones and steel are currently relatively insulated because of exemptions, existing tariffs and strong domestic demand.

According to S&P Global Ratings, the macroeconomic impact of the hike in tariffs would be cushioned by the large size of the India’s domestic market.

The Indian benchmark indices opened the week with gains on Monday, as IT stocks led the rally after a potential rate cut in the US boosted investors' sentiment.

The BSE Sensex gained 251.41 points, or 0.31 per cent to touch 81,558. The Nifty 50 inched up 71 points, or 0.29 per cent up to 24,941.

Sector-wise, the Nifty IT index led the gains with 1.77 per cent surge followed by Nifty Metal index up 0.88 per cent. The majority of other indices showed moderate gains.

In the Nifty pack, Infosys, Tech Mahindra, TCS, Bajaj Finance, Hindalco and NTPC were the major gainers. ICICI Bank, Apollo Hospital, Jio Financial and Maruti Suzuki were the major laggards.

Private sector lender Yes Bank on Saturday said that Japanese Sumitomo Mitsui Banking Corporation (SMBC) has received Reserve Bank of India's (RBI) nod to acquire 24.99 per cent stake in the bank.

India’s goods exports to China surged 20 per cent year-on-year in the first four months of Financial Year (FY) 26, touching $5.76 billion (about Rs 50,112 crore), according to official data.

The government has officially notified the Income-tax Act, 2025, which consolidates and amends the existing income tax law, replacing the over six-decade-old Income Tax Act, 1961.

India's foreign exchange reserves rose by $1.49 billion to $695.11 billion for the week ended August 15, data released by the RBI on Friday showed.

The US tariff hike of 50 per cent would hit Indian corporates unevenly, with the labour-intensive textiles and gems and jewellery segment expected to see only a moderate impact while pharmaceuticals, smartphones and steel are currently relatively insulated because of exemptions, existing tariffs and strong domestic demand, according to a report on Friday.

However, capital goods, chemicals, automobiles, and food and beverage exports would face the toughest adjustment, the S&P Global report states.

The fallout from a US move to double tariffs on Indian goods -- from 25 per cent to 50 per cent from August 27 -- in retaliation for New Delhi's oil trade with Moscow will not be uniform, in S&P Global Ratings' view. This will be the highest tariff in the region and will affect 50 per cent-60 per cent of India's total exports to the US.

India’s private sector economy expanded at its fastest pace on record in August, supported by a surge in new orders and resilient demand, according to a report.

The India Composite Output Index jumped to 65.2 in August, up from 61.1 in July, HSBC said in its report.

The HSBC Flash India Composite Output Index measures combined activity in manufacturing and services.

August data marked the steepest pace of growth since the survey began in December 2005, according to the report.

According to the report, India’s private sector economy posted its sharpest expansion since survey data were first collected in December 2005 during August.

The Japanese government plans to double the target for private-sector investment in India to 10 trillion yen ($68 billion) over the next 10 years, according to a media report from Tokyo.

Prime Minister Shigeru Ishiba and Indian Prime Minister Narendra Modi are expected to confirm the new target during their meeting in Tokyo on August 29, according to a report.

This plan will expand upon Japan's current goal of investing 5 trillion yen over five years, which was announced in March 2022 by then Prime Minister Fumio Kishida during his visit to India

The Indian benchmark indices began the Friday morning session in the red zone, following a week-long rally, amid mixed global cues.

The BSE Sensex declined 290 points or 0.35 per cent to 81,709. Nifty 50 slipped 93 points or 0.37 per cent to 24,990 points.

Broader markets started the day mixed, as the Nifty midcap 100 index edged up slightly by 0.06 per cent, while Nifty smallcap index 100 fell by 0.24 per cent.

Among sectoral indices, Nifty Bank (-0.45 per cent), Nifty IT (-0.27 per cent) ended lower. The FMCG and metal stocks also showed losses. Most of the other indices showed minor gains.