By 9, July 31 -- Indian stock markets opened sharply lower on Tuesday after the US announced a 25% tariff on Indian imports starting August 1, along with an additional, unspecified penalty.

17 a.m. IST, the Nifty 50 had slipped 0.66% to 24,699.1, while the BSE Sensex dropped 0.71% to 80,888.01. All 16 major sectoral indices opened in the red. Broader indices also felt the heat, with both small-cap and mid-cap stocks shedding over 1.25%.

The steep tariff rate signals a tougher stance toward India compared to other major trading partners, potentially derailing months of trade negotiations. Despite the move, President Donald Trump said discussions with India are ongoing.

Analysts warn that key export sectors-textiles, pharmaceuticals, and...