Indian Market Reacts to Trump's Tariff Announcement

Indian shares dipped slightly as President Trump's new 26% tariff on imports provoked market reactions. Despite this, select sectors like pharmaceuticals remain exempt, providing some support.

Date: 03-04-2025

AI Rating: 6

The recent announcement regarding a 26% reciprocal tariff on Indian imports by U.S. President Trump has led to a slight downturn in Indian shares. The benchmark S&P/BSE Sensex fell by 330 points, or 0.4%, indicating a cautious market response. However, certain sectors, particularly pharmaceuticals, steel, copper, and energy, remain exempt from these tariffs, which could mitigate the potential negative impact on these industries.

Impact on Sectors: The exemption of the pharmaceutical sector is particularly significant. With companies like Sun Pharma experiencing a notable increase of over 5% in their stock prices amidst these announcements, it showcases investor confidence in this sector's resilience against tariff-induced volatility.

Moreover, the market is also waiting for cues from the upcoming Reserve Bank of India's (RBI) policy meeting, with expectations of a potential 25 basis points cut in the policy repo rate. Such a monetary easing move could provide further support to the market and investors by encouraging borrowing and spending, thus potentially boosting economic growth.

Performance Analysis: As for the general market performance among key stocks: Tata Motors, HCL Technologies, Tech Mahindra, Infosys, and TCS saw declines of 1-3 percent, reflecting a more cautious investor sentiment towards these technology and automotive companies in light of international trade uncertainties. On the other hand, stocks like NTPC, Titan Company, and Bajaj Finance have managed to rise, albeit modestly, demonstrating some positive signals amid the broader market tension.

Stocks: TATAMOTORS HCLTECH TECHM INFY TCS SUNPHARMA NTPC TITAN BAJFINANCE POWERGRID