Despite market decline, Nifty Pharma shines; Here’s how Trump’s 27% tariff hit Indian stocks

Mumbai: Benchmark indices Sensex and Nifty ended lower on Thursday, primarily due to selling in IT and Teck shares and a global sell-off. The downturn was triggered after US President Donald Trump announced reciprocal tariffs on 60 countries, including India.

The 30-share BSE Sensex declined by 322.08 points or 0.42 percent to close at 76,295.36. During the session, it plunged 809.89 points or 1.05 percent to hit an intraday low of 75,807.55 but later pared some losses as pharma shares advanced.

The broader NSE Nifty fell 82.25 points or 0.35 percent to settle at 23,250.10. The index declined by 186.55 points or 0.79 percent to a low of 23,145.80 in early trade before recovering some ground.

What led to the market recovery?

Ajit Mishra, SVP, Research, Religare Broking Ltd, explained, "The Nifty index opened lower in response to the US tariff announcements but saw some recovery due to resilience in select heavyweight stocks. This helped trim losses in early trades, leading to a range-bound session."

Which stocks faced the biggest losses?

From the Sensex pack, the major laggards included:

• Tata Consultancy Services
• HCL Technologies
• Tech Mahindra
• Infosys
• Tata Motors
• Bajaj Finance
• Kotak Mahindra Bank
• Mahindra & Mahindra
• Bharti Airtel
• Maruti Suzuki India
• Tata Steel

Which stocks showed gains?

The gainers among Sensex stocks included:

• PowerGrid
• Sun Pharmaceuticals
• UltraTech Cement
• NTPC
• Asian Paints
• Nestle India
• Titan
• IndusInd Bank
• Axis Bank

How did broader markets perform?

In broader markets, the BSE smallcap gauge rose by 0.76 percent, and the midcap index gained 0.31 percent. Market breadth remained positive, with 2,809 stocks advancing, 1,175 declining, and 139 remaining unchanged on the BSE.

Why did the US impose additional tariffs on India?

The US announced an additional 27 percent import duty on Indian goods, citing high tariffs imposed by New Delhi on American products. President Trump justified the move as part of efforts to reduce the trade deficit and strengthen US manufacturing.

Announcing the measure from the White House's Rose Garden on Wednesday, Trump said, "This is Liberation Day, a long-awaited moment. April 2, 2025, will forever be remembered as the day American industry was reborn, the day America's destiny was reclaimed, and the day that we began to make America wealthy again. We are going to make it wealthy, good, and wealthy."

How did global markets react?

Asian markets witnessed a significant decline:

• Tokyo's Nikkei dropped nearly 3 percent.
• Hong Kong’s Hang Seng fell by 1.52 percent.
• Seoul's KOSPI declined by 0.76 percent.
• Shanghai Composite Index lost 0.24 percent.

European markets also traded lower in mid-session deals, though Wall Street ended higher on Wednesday.

The global oil benchmark Brent crude declined by 3.68 percent, settling at USD 72.19 a barrel.

What were the trading trends of institutional investors?

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,538.88 crore on Wednesday, while Domestic Institutional Investors (DIIs) purchased shares worth Rs 2,808.83 crore on a net basis.

What was the market trend in the previous session?

On Wednesday, the 30-share BSE Sensex rebounded 592.93 points to settle at 76,617.44, while the NSE Nifty climbed 166.65 points to settle at 23,332.35.