Indian Shares End Lower Before Trump's Fed Chair Pick

(RTTNews) - Indian shares ended lower on Friday, with tariff worries, speculation about a potential hawkish Federal Reserve chair appointment and caution ahead of the Union Budget keeping investors on edge.

U.S. President Donald Trump threatened Canada with a 50 percent tariff on any aircraft sold in the U.S., the latest salvo in his trade war with America's northern neighbor.

Also, Trump signed an executive order aimed at imposing trade tariffs on countries that provide oil to Cuba, a move that puts pressure on Mexico.

The rupee slipped to a record low today, tracking the dollar's rebound in international markets, after U.S. lawmakers reached an agreement to avoid a partial government shutdown and President Trump said he has chosen a very good person to be the new Federal Reserve chairman, with a formal announcement expected later in the day.

According to media reports, former Federal Reserve governor Kevin Warsh has emerged as the top contender. Warsh is viewed as moderately hawkish with balanced approach—less dovish than Hassett but more dovish than Waller.

He is seen as hawkish on inflation with historical opposition to quantitative easing, suggesting a stronger dollar environment ahead.

The benchmark BSE Sensex dropped 296.59 points, or 0.36 percent, to 82,269.78, pressured by a weak rupee and rising oil prices amid rising U.S.-Iran tensions.

The broader NSE Nifty index slipped 98.25 points, or 0.39 percent, to 25,320.65. The BSE mid-cap index finished marginally lower, but the small-cap index surged 1.3 percent.

The market breadth was positive on the BSE, with 2,425 shares rising while 1,783 shares fell and 159 shares closed unchanged.

Metal stocks retreated after a three-day rally, with Tata Steel tumbling 4.6 percent. Trent, Kotak Mahindra Bank, Infosys, Tech Mahindra, HCL Technologies, Power Grid Corporation and ICICI Bank fell 1-2 percent.

On the positive side, BEL, ITC, SBI and Mahindra & Mahindra all rose over 1 percent. NSE and BSE will remain open on Sunday, February 1, for a special trading session as the Finance Minister presents the Union Budget 2026.