The retaliation imposed by US President Donald Trump affected the global market, but India’s major indexs were largely unaffected on Thursday and there was a slight decline of 0.4 percent. However, the tariff shows a very little impact when a climbing and a close testing of the share and regional performance with a mixture of falling.
Pharmaceutical
The Nifty Pharma index increased by 2.25 percent after the pharmaceutical sector was unexpectedly freed from mutual tariffs. Companies associated with more business in the US, such as Ipka Laboratories, Lupine, Natco Pharma, Sun Pharmaceutical and Cipla rose between 3 and 6 per cent. India is relieved by keeping the region free from tariffs as pharmaceutical is an important export to the US. Uncertainty remains as the Trump administration has indicated to impose tariffs on the region in future.
Textyile
India’s textile sector may be the beneficiary of high tariffs levied on major apparel exporting countries like Vietnam (46 per cent) and Bangladesh (37 per cent). The reason for this is that India has been imposed tariff 26 percent. Due to this increase, traders bought shares of companies like Vardhman Textiles, Trident and Gokaldas Exports, which has increased by 18 percent in these shares.
Information technology (IT)
IT shares were the most pressure. The Nifty IT index fell nearly 4 per cent. This is when software exporters are not directly affected by the new round of tariffs. However, the negative market response has arisen from the concern that tariff war can damage global growth and companies may be bound to reduce their IT expenses. A report by Jeffers states, ‘Despite the possible low rates in the future, the indirect effect of slow GDP growth can be seen due to high tariffs. High tariffs will affect the demand for construction/logistics and retail areas, while the demand for areas such as healthcare, high-tech, utilities and communications will be less impact. ‘
Auto and Auto Ansiliery
Other major exporting areas of automobiles and auto components led to a slight weakness. The US already imposed 25 per cent tariff on 26 March in the region. However, many stocks in the region have already fallen in recent weeks. Companies dependent on American revenue, such as Sona BLW Presicion Forgings and Tata Motors faced again.
Chemical and Aquaculture
Selling was observed in shares of companies in chemicals, agriculture and aquaculture sector. Analysts say the companies in the region will have to face double hit as they will have an impact of the US high tariffs and they may face increasing competition due to pressure to reduce import duty on India and increase access to the domestic market.
First Published – April 3, 2025 | 11:13 pm IST
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