Trump's Tariffs Threaten Indian Oil PSUs: Market Plunges, Costs Soar

• US President Donald Trump's proposed 500% tariff on crude oil from Russia caused a major jolt to the Indian stock market.
• Investors lost 8 lakh crore rupees in a single day on January 8, with Nifty and Sensex experiencing significant declines for two consecutive days.
• Indian government oil marketing companies (OMCs) face the biggest impact, as they may be forced to buy crude at higher prices from other countries, leading to increased costs and pressure on margins.
• Russia accounts for over 35% of India's crude imports; India may have to source from Brazil and West Asia at higher rates.
• Crude oil prices could rise to $60-75 per barrel, and PSU, metal, and energy stocks may also be affected, with midcap and smallcap possibly seeing a 6-7% decline.

Why It Matters: Trump's proposed tariffs on Russian crude could significantly raise costs for Indian OMCs and impact the stock market.