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 ...
Quick Summary
US cuts tariffs on Indian goods to 18% from as high as 50%
India agrees to stop buying Russian oil, easing US–India tensions
India pledges major US purchases, including energy and technology
Markets rally: Indian equities and rupee surge on relief trade
What Happened
US President Donald Trump said he will lower tariffs on Indian goods to 18% after a call with Prime Minister Narendra Modi, linking the move to India’s agreement to halt purchases of Russian oil.
Washington is also removing an extra 25% duty imposed earlier over India’s Russian crude imports, according to officials.
Why It Matters
Overall levies fall from ~50% to 18%, a major relief for Indian exporters
Textiles, machinery and labor-intensive goods benefit the most
India sends nearly 20% of its exports to the US, its largest market
The deal eases pressure on India’s manufacturing ambitions
Trump said India would also reduce tariffs and non-tariff barriers on US goods to zero and purchase over US$500 billion of US energy, technology, agriculture and coal.
Modi confirmed the tariff cut but did not mention oil in his statement.
Market Reaction
Nifty 50 futures (GIFT City): +3.8% (thin trading)
iShares MSCI India ETF: +3%
Indian rupee: +1% in offshore trading
“It removes a hanging sword over rupee, equity and rates,” said Nilesh Shah of Kotak Mahindra AMC.
Context: Oil & Sanctions
India became a major buyer of discounted Russian crude after 2022. Previous US efforts slowed but didn’t stop flows. US sanctions on Rosneft and Lukoil later reduced India’s appetite more meaningfully. The new pact aims to tighten that shift.
Trump also said India may buy more Venezuelan oil, though Modi did not confirm this.
Bottom Line
This is a major reset in US–India trade ties.
Tariff relief delivers immediate market upside and export support for India, while the US ties trade concessions to geopolitical goals on Russia. Details will matter—but for now, both sides claim a win.
Key Takeaways
Tariffs cut to 18% from punitive levels
Russian oil link anchors the deal
Indian markets cheer relief
Execution and verification are the next tests
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