Indices trade with minor losses; IT shares decline

The headline equity benchmarks traded with minor losses in the morning trade. The downturn comes after US President Donald Trump announced wide-ranging tariffs on imports from partner and adversary nations alike, spurring fears of a recession in the US and trade wars worldwide. The Nifty traded near the 23,300 level. IT shares declined after advancing for the previous trading session.

At 10:30 ST, the barometer index, the S&P BSE Sensex, slipped 136.17 points or 0.19% to 76,472.28. The Nifty 50 index fell 32.55 points or 0.14% to 23,302.60.

In the broader market, the S&P BSE Mid-Cap index shed 0.09% and the S&P BSE Small-Cap index added 0.35%.

The market breadth was positive. On the BSE, 2,290 shares rose and 1,206 shares fell. A total of 181 shares were unchanged.

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, the United Arab Emirates, and Saudi Arabia. However, around 60 countries deemed "worst offenders"hose" that impose higher tariffs on US goods or create trade barriersill 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 productsome of which are already subject to existing tariffsill 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%.

Buzzing Index:

The Nifty IT index fell 3.20% to 35,123.40. The index added 0.84% in the previous trading sessions.

Persistent Systems (down 8.32%), Coforge (down 5.69%), Mphasis (down 4.19%), Tata Consultancy Services (down 3.02%) and Tech Mahindra (down 2.94%), HCL Technologies (down 2.79%), Oracle Financial Services Software (down 2.75%), Infosys (down 2.48%), Wipro (down 1.92%) and LTIMindtree (down 1.75%) declined.

Stocks in Spotlight:

B R Goyal Infrastructure advanced 1.79% after the company received a work order worth Rs 10.90 crore from NHIT Eastern Projects for the improvement works in respect of Lakhnadon - Khawasa section of NH-44 in Madhya Pradesh.

Lemon Tree Hotels rose 1.10% after the company announced that it has signed a license agreement viz. Lemon Tree Hotel, Jaipur, Rajasthan.

Bajaj Auto fell 2.39%. The company has recorded total sales of 3,69,823 units in March 2025, which is higher by 1% as compared with the sales volume of 3,65,904 units sold in March 2024.

Sky Gold and Diamonds shed 0.25%. The company said that its board has approved to establish a wholly owned subsidiary (WOS) in Dubai (UAE), positioning itself for significant export growth.

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