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Stock market today: Sensex, Nifty 50 crack as textile, footwear, jewellery stocks take biggest hit from US tariffs
The US tariffs on India have triggered a sharp selloff on Sensex and Nifty 50 today, a trend that's likely to persist in the near-term, according to analysts.
India’s stock market is showing effects of the highest US tariffs on the world’s fourth largest economy, with equity benchmarks trading in the red by midday. At 12:07 pm today, the S&P BSE Sensex was down 0.4% at 80,476.74 points while the broader Nifty 50 was 0.32% lower at 24,574 points.
According to analysts, markets are facing significant headwinds after the US implemented the extra 25% tariff on Indian goods over New Delhi's purchase of Russian oil, taking the total tariffs to 50%. That’s set to impact India’s exports worth $48 billion.
"This measure has already triggered a sharp selloff and is expected to maintain pressure on the market in the near-term," said Santosh Meena, head of research at Swastika Investmart. The tariffs are a direct challenge to India's export-oriented sectors such as textiles and apparel, gems and jewellery, seafood, chemicals and auto component sectors, Meena said.
Foreign portfolio investors have sold Indian shares worth $2.66 billion in August so far, the highest outflows since February, amid tariff concerns and a muted corporate earnings season.
Crude oil prices fell as investors weighed the outlook for US fuel demand and assessed potential crude supply shifts as India faces punishing US tariffs over Russian oil imports.
Stocks Most Hit By US Tariffs
Stocks of companies involved in textile, leather, and gems and jewellery business fell the most on Thursday, as a 50% US tariff on them came into effect.
Alok Industries Ltd. (-4.13%), Raymond Lifestyle Ltd. (-3.66%), Siyaram Silk Mills (-2.92%), Welspun Living Ltd. (-2.53%) and Gokaldas Exports Ltd. (-2.35%) and Trident Ltd. (-2.16%) led the declines among textile stocks.
Among leather and footwear stocks, Zenith Exports Ltd. (-4.33%), Relaxo Footwears Ltd. (-2.34%), Superhouse Ltd. (-1%) were the biggest laggards.
Among gems and jewellery stocks, Uday Jewellery Industries (-2.49%), Senco Gold Ltd. (-2.20%), Tribhovandas Bhimji Zaveri (-1.87%) and PN Gadgil Jewellers (-1.10%) were the biggest losers.
