Global sell-off deepens on tariff woes, but India holds the line; Nifty holds 23,250

Key equity benchmarks closed with modest losses today as a global sell-off followed President Trumps steeper-than-expect tariff hike. IT stocks took a hit on growth concerns and potential cuts in client spending, while pharma stocks outperformed after being spared from the new tariffs.

The Nifty recovered from its intraday low of 23,145.80 to close above 23,250. Despite the downturn, India's stock market fared better than global peers, thanks to a relatively lower tariff burden27% versus steeper levies on China (54%), Vietnam (46%), Bangladesh (37%), Thailand (36%) and Pakistan (29%). This competitive edge helped cushion the impact on Indian equities.

The S&P BSE Sensex tumbled 322.08 points or 0.42% to 76,295.36. The Nifty 50 index shed 82.25 points or 0.35% to 23,250.10.

TCS (down 3.98%), Infosys (down 3.41%) and Tata Motors (down 2.64%) were major drags.

In the broader market, the S&P BSE Mid-Cap index rose 0.31% and the S&P BSE Small-Cap index added 0.76%.

The market breadth was strong. On the BSE, 2,813 shares rose and 1,169 shares fell. A total of 141 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, shed 0.89% to 13.60.

Trump's Tariff Shock:

US President Donald Trump has announced a sweeping set of reciprocal tariffs, aiming to counter what he calls unfair trade practices. A 10% baseline tariff will be imposed on all imports starting April 5, impacting the United Kingdom, Singapore, Brazil, Australia, New Zealand, Turkey, Colombia, Argentina, El Salvador, United Arab Emirates, and Saudi Arabia. However, around 60 countries deemed "worst offenders" - those that impose higher tariffs on US goods or create trade barrierswill face significantly steeper tariffs beginning April 9. These include China (54%), the European Union (20%), Vietnam (46%), Thailand (36%), Japan (24%), Cambodia (49%), South Africa (30%), and Taiwan (32%). While Canada and Mexico are exempt from these new tariffs, they remain subject to previous trade measures tied to border security and fentanyl-related concerns.

Additionally, Trump has also announced a 25% tariff on all foreign-made automobiles, set to take effect at midnight on April 3.

Importantly, no new reciprocal tariffs were announced for the pharmaceutical sector. According to a White House fact sheet, drugs and certain other productssome of which are already subject to existing tariffswill not be affected by the latest levies. However, Trump has hinted that future tariffs on pharmaceuticals, semiconductors, and other sectors may be unveiled at a later date.

India will face a 25% tariff on steel, aluminium, and auto-related goods, and no tariffs on pharmaceuticals, semiconductors, copper, or energy products. For the remaining products, India will be taxed a reciprocal tariff of 27%.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was up 1.85% to 6.604 as compared with previous close 6.480.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.2800, compared with its close of 85.5200 during the previous trading session.

MCX Gold futures for 5 May 2025 settlement fell 0.98% to Rs 89,500.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 1.83% to 101.77.

The United States 10-year bond yield tumbled 3.08% to 4.066.

In the commodities market, Brent crude for June 2025 settlement fell $3.37 or 4.50% to $71.58 a barrel.

Global Markets:

Dow Jones futures plunged 1,270 points, signaling a rough start for Wall Street after President Trumps sweeping tariff move. Over 180 countries and territories now face hefty reciprocal tariffs, sparking global market jitters.

Trump defended the decision, citing unfair trade practices and currency manipulation, claiming the tariffs would boost American industries and cut national debt.

Markets reacted swiftlyUS stock futures sank, fearing inflation and retaliation, while European and Asian stocks tumbled as investors rushed to safe-haven assets.

Before the tariff announcement, US stocks had a volatile session, with major indices posting gains. The S&P 500 rose 0.7%. The Dow Jones Industrial Average added 0.6%, and the Nasdaq composite climbed 0.9%.

Tesla rebounded, surging over 5%, following reports that CEO Elon Musk may step down from his government advisory role to fully focus on the EV company.

Rivian Automotive slumped 6% after reporting a sharp decline in Q1 deliveries, as demand softens. Ncino plunged 20% after issuing disappointing guidance. CoreWeave Inc extended its rally, soaring 16%, amid reports that Google is in advanced talks to rent Nvidia AI services from the cloud computing firm.

On the macroeconomic front, the US ADP National Employment Report showed that private payrolls increased by 155,000 in March, following an upwardly revised 84,000 gain in Februarya sign that the labor market remains resilient despite economic uncertainties.

Stocks in Spotlight:

The Nifty IT index tumbled 4.21% to 34,757.25, reflecting recession fears and tariff-related concerns. Persistent Systems (down 9.75%), Coforge (down 7.8%), Mphasis (down 3.97%), Tata Consultancy Services (down 3.97%), HCL Technologies (down 3.87%), Tech Mahindra (down 3.73%), LTIMindtree (down 3.58%), Infosys (down 3.51%), Wipro (down 2.64%) and Oracle Financial Services Software (down 1.96%) declined.

The Nifty Pharma index rose 2.25% to 21,423.55 after US President Donald Trump excluded the pharma sector from the reciprocal tariffs.

IPCA Laboratories (up 4.59%), Lupin (up 4.19%), Natco Pharma (up 4.06%), Sun Pharmaceutical Industries (up 3.41%) and Cipla (up 3.28%) advanced.

Gland Pharma rallied 1.75% after the company received approval from the United States Food and Drug Administration (USFDA) for Acetaminophen Injection, 10 mg/mL (500 mg/50 mL and mg/100 mL) bags.

Shilpa Medicare rose 4.03% after the company announced that its marketing partner, Amneal Pharmaceuticals, has launched BORUZU injections. BORUZU (Bortezomib for injection 3.5mg/1.4ml) is a proteasome inhibitor used for the treatment of multiple myeloma and mantle cell lymphoma. It serves as a reference to the branded product Velcade, which is a lyophilized powder that requires reconstitution before use.

Hero MotoCorp fell 0.74%. The worlds largest manufacturer of motorcycles and scooters has reported 12% increase in total two-wheeler sales to 549,604 units in March 2025 from 490,415 units sold in March 2024.

Marico rose 0.63%. The company said that during the quarter, it expects gradual improvement in overall consumption sentiment on the back of moderating retail and food inflation as well as forecasts of a normal monsoon.

Bharat Electronics (BEL) added 1.82% after the company has signed a contract with Indian Air Force (IAF) valued at Rs 593.22 crore.

AU Small Finance Bank (SFB) jumped 4.6% after the bank's total deposits climbed 10.7% to Rs 1,24,270 crore as of 31st March 2025 compared with Rs 1,12,260 crore as of 31st December 2024.

ESAF Small Finance Bank (SFB) rallied 5.44% after the bank announced that its total deposits jumped 17.16% to Rs 23,277 crore as of 31st March 2025 as compared with Rs 19,868 crore as of 31st March 2024.

IDFC First Bank advanced 5.45% after the banks total business (loans & advances and customer deposits) jumped 22.72% from Rs 4,84,394 crore as of 31 March 2025 to Rs 3,94,718 crore as of 31 March 2024.

GE Power India rallied 3.14% after the company secured a purchase order worth Rs 38.2 crore from state-owned NTPC for the supply of generator parts.

Shakti Pumps India advanced 3.05% after the company announced that it has received a Letter of Award (LoA) worth Rs 12.42 crore from the Maharashtra Energy Department Agency (MEDA).

Hariom Pipe Industries surged 6.9% after the company reported 46% jump in sale of value-added products (VAP) to 72,149 MT in Q4 FY25 from 49,260 MT in Q4 FY24.

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