Stock Market LIVE: Sensex closes over 300 points lower, Nifty down over 80 on day 1 of Trump's tariffs

Among the Nifty sectoral indices, the Pharma Index rose the most by 2.25 per cent, reaching 21,423.55. This was followed by Nifty Healthcare, which was up 1.98 per cent, reaching 13,849.50, and the Nifty Midsmall Healthcare Index, which was up 1.83 per cent, reaching 41,005.05.

The IT Index fell the most by 4.21 per cent, reaching 34,757.25. This was followed by Nifty Midsmall IT & Telecom, which was down 3.61 per cent, reaching 8,901.60, and the Nifty Auto Index, which was down 1.14 per cent, reaching 21,164.00.

Among the 30 Sensex stocks, Powergrid Corporation of India rose the most on close by 4.57 per cent, reaching ₹299.80. This was followed by Sun Pharmaceutical Industries, which was up 3.33 per cent, reaching ₹1,771.30, and UltraTehc Cement, which was up by 2.92 per cent, hitting ₹11,583.65.

Meanwhile, TCS fell the most on close by 4.02 per cent, reaching ₹3,402.50. This was followed by HCL Technologies, which was down 3.96 per cent, reaching ₹1,467, and Tech Mahindra, which was down by 3.84 per cent, hitting ₹1,369.

The stock market closed in the red with the Sensex dropping by 322.08 points or 0.42%, reaching 76,295.36, while the Nifty was down 82.25 points or 0.35%, reaching 23,250.10.

Axis Securities said in its report called ‘Understanding the Impact of Trump Tariffs’ that “despite this development, we believe the direct impact on India remains limited. With higher tariffs being imposed on competing economies, Indian exports are not at a relative disadvantage. However, in the short term, certain sectors may experience pressure on volumes, margins, and overall growth. It will be crucial to monitor any retaliatory actions from affected nations and how bilateral trade agreements evolve in the coming months.”

Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group, said that the “roughly 87% of India’s $81 billion exports to the US will fall under the new tariff regime. Exemptions include steel and aluminium products, automotive parts, copper, pharmaceuticals, semiconductors, and lumber, which are either covered under separate tariff regimes or subject to future negotiation.”

He added that India is however, better positioned than most of its peers since “India’s reciprocal tariff rate of 26% is relatively favourable compared to key US trade partners such as China (54%), Vietnam (46%), or Sri Lanka (44%).”

The rupee is currently worth 85.4375 to the dollar, as per Bloomberg data. This is down by 0.08%.

The indicative close of the Sensex is at 76,310.04, which is 307.40 points or 0.40% in the red, whereas the Nifty may close at 23,251.20, which is 81.15 points or 0.35% down.

The stock market stayed in the red throughout the trading session with the Sensex dropping by 304.52 points or 0.40%, reaching 76,312.92, while the Nifty was down 74.70 points or 0.32%, reaching 23,257.65.

Israeli Finance Minister Bezalel Smotrich said on Thursday that he was meeting with ministry officials to plan how to protect Israel's economy after US President Donald Trump announced new import tariffs.

Under the new trade policy, Israeli exports to the US will face a 17% tariff.

Smotrich said he would first speak with economic leaders, then meet with officials to assess risks and opportunities and decide on actions to take—both in response to Trump and his team and to support Israel's industries.

European stocks fell after US President Donald Trump introduced the highest American tariffs in 100 years, including a 20% tariff on the European Union. The EU promised to fight back.

The Stoxx Europe 600 Index dropped 1.7% to 527.63 by 9:13 a.m. in Paris, with companies in basic materials, consumer products, and industry seeing the biggest losses.

Germany’s DAX Index fell 2.4%, while Sweden’s OMX Stockholm 30 Index dropped 2.6%.

Prices of commodities, including oil, copper and agricultural products, fell on Thursday even as spot gold hit an all-time high of $3,167.57 due to a rush among investors for a “safe haven”

Copper and aluminium slid around 1.5% on the London Metal Exchange.

Oil prices fell by as much as 3%.

Soybeans, corn and wheat fell around 1.5%.

Daniel Hynes, senior commodity strategist at ANZ Research, said, “Any retaliatory tariffs by impacted countries could weigh on global economic growth. The subsequent impact on industrial activity would see commodity markets come under pressure.”

The Indian rupee on Thursday held up reasonably well to the dip in most Asian currencies and equities, triggered by US President Donald Trump's sweeping reciprocal tariffs.

The rupee was down 0.16% to the U.S. dollar at 85.6375.

The rupee “is holding up remarkably well given the magnitude of the negative surprise on the U.S. tariff front,” said a currency trader at a Mumbai-based bank.

"Most, myself included, would have expected a more significant move, especially considering the current levels." (Reuters)

Indian shares fell on Thursday after Trump's tariff announcement, but a surge in pharma stocks, helped by a tariff exemption, softened the blow in early trade.

The Nifty 50 traded 0.2% lower at 23,285.6 as of 10:45 a.m. IST, while the BSE Sensex fell 0.27% to 76,410.8. Key indexes in China fell 1.5%, while Thailand and Vietnam traded 1% and 6.1% lower.

The Indian mid-cap index was down 0.2%, while the small-caps rose 0.2%.

The pharma index jumped 2.6%.

Shares of Asian companies that make products in Vietnam fell after US President Donald Trump introduced higher-than-expected tariffs.

Japanese sports shoe company Asics Corp., South Korean food producer Daesang Corp., and other firms with factories in Vietnam saw their stock prices drop after Trump placed a 46% tariff on Vietnamese imports—one of the US's highest “reciprocal” rates.

Asics dropped by as much as 11%, while Daesang, which expanded its production in Vietnam last year, fell by over 7%. Asian suppliers for Nike and Adidas also saw their shares decline.

Taiwan on Thursday termed US tariffs as "highly unreasonable" and said the government planned to start "serious negotiations" with the Trump administration.

"The Executive Yuan found the decision highly unreasonable and deeply regretted it, and will initiate serious negotiations with the United States," cabinet spokeswoman Michelle Lee said.

“The surge in US demand for Taiwan's ICT products reflects Taiwan's significant contribution to the US economy and national security, yet Taiwan is now being hit with high tariffs. The proposed tariff does not accurately reflect the actual state of Taiwan-US trade relations and is unfair to Taiwan,” Lee added.

Taiwan's trade surplus with the United States is the seventh highest of any country, reaching US$73.9 billion in 2024.

Global Trade Research Initiative (GTRI) Founder Ajay Srivastava said that high tariffs imposed on Chinese and Bangladeshi textile exports create an opportunity for Indian manufacturers to increase market share, attract new production setups, and expand exports to the US.

Another sector likely to benefit from this is electronics, including telecom and smartphones. With Vietnam and Thailand facing steep U.S. tariffs, they may lose their cost advantage, he noted.

An official document shared by the White House claimed that India's simple average Most Favoured Nation (MFN) tariff rate is 17%, significantly higher than the 3.3% charged by the US.

A retaliatory tariff of a similar rate, added by a 10% baseline tariff, would mean India could be charged a 27% tariff in total.

Market experts noted that Trump's announcement of a reciprocal tariff is impacting stocks. Investors are shifting funds to safer assets, such as gold, further exacerbating the sell-off in equities.

Ajay Bagga, a Banking and Market expert, told ANI that "the Impact on India will come via the US dollar, economic pain caused by possible falling exports and margins, and impacted EM portfolio flows as investors flee to safe havens like gold, Yen, Swiss franc, and Japanese government bonds. Uncertainty is now converted to certainty of economic and market pain. The first reaction is to rush into safe havens and to sell risk assets."

The Indian markets opened red on Thursday after Trump's 26% tariffs.

BSE opened over 800 points down, at 75,811.12, marking a 1.05 per cent decline. Similarly, the NSE Nifty 50 index fell by 182.05 points, opening at 23,150.30, down by 0.78 per cent.

The rupee fell 26 paise to 85.78 against the US dollar in early trade on Thursday.

European Commission President Von Der Leyen said Trump's latest tariff is a “major blow” to the global economy. She also said the bloc is preparing for further countermeasures if trade negotiations with the US fail.

India imposes its “own uniquely burdensome” testing and certification requirements in sectors such as chemicals, telecom products, and medical devices, making it "difficult or costly" for American companies to sell their products in the country, the White House said.

White House fact sheet said: "India imposes its own uniquely burdensome and/or duplicative testing and certification requirements in sectors such as chemicals, telecom products, and medical devices that make it difficult or costly for American companies to sell their products in India. If these barriers were removed, it is estimated that US exports would increase by at least USD 5.3 billion annually.”

China urged the United States to immediately cancel its latest tariffs and vowed countermeasures to safeguard its own rights and interests.

The Chinese commerce ministry said Trump's latest trade escalation disregarded the balance of interests reached in multilateral trade negotiations over the years.

A commerce ministry official told PTI that Trump's ‘discounted’ 26% tariff on Indian goods is a “mixed bag and not a setback for India.”

“The ministry is analysing the impact of the announced tariffs,” the official said, noting that the Trump administration could reduce tariff rates if their trade concerns are addressed.

The People’s Bank of China retained support for its currency, Yuan, after the US hit the world’s No. 2 economy with the biggest-ever tariff hike – a cumulative 54% tariff.

China’s central bank set the yuan’s reference exchange rate at 7.1889 per dollar on Thursday after the currency fell to the lowest since early February in offshore trading.