KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Tariff Shock Threatens India’s Growth Path
Moody’s Ratings flagged serious risks to India’s manufacturing ambitions after U.S. President Donald Trump doubled tariffs on Indian goods to 50%, citing continued Russian oil imports. The move imposes significantly higher penalties on India compared to other Asia-Pacific economies.
Investment Gains at Risk
The ratings agency warned the higher tariffs could reverse recent foreign investment inflows into India’s industrial base and disrupt its broader growth momentum.
“These tariffs may undercut India’s positioning as a rising global manufacturing hub,” Moody’s noted.
RBI Holds Policy Steady
In a separate move, the Reserve Bank of India left interest rates unchanged and maintained a neutral policy stance, following a surprise 50bps cut in June.
Oil Supply Concerns
Moody’s also cautioned that any reduction in Russian crude imports to avoid U.S. sanctions could strain India’s ability to secure timely and adequate alternative supplies, potentially adding pressure on inflation and trade balances.
Foreign Investors Flee
Investor sentiment has already shifted. Foreign portfolio investors offloaded US$2 billion in July, followed by another US$900 million in August. Equity benchmarks Nifty 50 and Sensex fell 2.9% in July, and are down 0.7% month-to-date as trade uncertainty escalates.
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