KUALA LUMPUR, Feb 4 (Bernama) -- Bursa Malaysia erased early gains to end lower today as profit-taking emerged following recent gains. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 5.44 points, or 0.31 per cent, to 1,742.82 from yesterday’s close of 1,748.26. The market bellwether opened 1.84 points lower at 1,746.42, and subsequently hit an intraday high of 1,751.22 in early trade before slipping to its day’s low of 1,740.49 during the mid-afternoon session. In the broader market, losers outpaced gainers 602 to 462, with 558 counters unchanged, 1,013 counters untraded and six suspended. Turnover declined to 2.59 billion shares valued at RM2.86 billion from yesterday's 3.25 billion shares valued at RM3.34 billion.
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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