Indian Stocks Decline as Tariff Fears Linger Despite Gains

Indian shares experience a weak start amid uncertainties regarding the Trump administration's trade policies. Despite the drop, pharmaceutical stocks thrive, signaling potential stability in this sector.

Date: 17-02-2025

AI Rating: 5

**Market Overview**

Indian stock markets are facing continued downward pressure, marking losses for nine consecutive sessions. This trend appears driven by lingering concerns surrounding U.S. trade policies under the current administration. Although there was a slight reprieve in tariff worries last week, the overall uncertainty continues to affect investor sentiment.

**Stock Performance**

Particularly affected are the automobile and information technology stocks, while pharmaceuticals are performing better amid the losses prevailing in other sectors. A notable instance is the performance of Mahindra & Mahindra, which has seen its stock fall over 3% despite reporting strong demand for its new electric SUV.

**Losses in Key Indices**

The benchmark BSE Sensex recorded fluctuations but ultimately fell by 0.33%, indicating broader market struggles. Similarly, the Nifty index is down by 0.31%, reflecting ongoing investor caution. These indices' performance suggests a market grappling with uncertainty.

**Corporate Highlights**

In terms of corporate results, Glenmark Pharmaceuticals has shown a turnaround by reporting a consolidated net profit of Rs 348 crore for the last quarter, a significant improvement from a loss of Rs 315 crore the previous year. This development positively impacts sentiment within the pharmaceutical sector and represents a stronger profit margin for the company. On the other hand, Zen Technologies faced a 20% decline in share value following a concerning report on new orders.

**Free Cash Flow Considerations**

While the report does not directly mention Free Cash Flow (FCF) for these companies, the increase in foreign exchange reserves reported by the Reserve Bank of India, which rose by $7.654 billion, suggests that liquidity might provide some support for companies amidst turbulent market conditions. Foreign exchange reserves can enhance investors’ confidence by indicating the country's ability to manage economic fluctuations.

Stocks: M&M ICICI BHARTI INFY LT BAJFINANCE ZOMATO RELIANCE HDFCBANK ULTRACEMCO ONGC GRASIM CIPLA SAIL