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Indian Stock Market Slips as US Tariff Shockwaves Hit Dalal Street

Date: 04-apr-2025

Indian Stock Market Slips as US Tariff Shockwaves Hit Dalal Street

Sensex and Nifty Decline as Investors React to U.S. Trade Policy

On April 4, 2025, Indian stock markets opened lower, reacting sharply to global uncertainties following the announcement of steep import tariffs by the United States. The BSE Sensex fell by 342 points to trade near 75,953.43, while the Nifty 50 slipped 123 points, currently hovering at 23,126.65. Investor sentiment weakened across key sectors, especially in technology and export-driven industries.

Top 5 Indian Stock Indices

Nifty 50 ₹23,054.10 ▼ 0.65%
BSE Sensex ₹76,900.00 ▼ 0.45%
Nifty Bank ₹51,420.00 ▼ 0.12%
Nifty Midcap 100 ₹43,080.00 ▼ 0.39%
Nifty Smallcap 100 ₹14,480.00 ▼ 0.22%
Updated at: 9:50 AM IST, April 4, 2025

Top Gainers and Losers

Top 5 Gainers

Tata Consumer Products ₹1,001.90 ▲ 2.91%
Kotak Mahindra Bank ₹1,800.00 ▲ 1.75%
Apollo Hospitals ₹4,500.00 ▲ 1.50%
ONGC ₹254.30 ▲ 5.01%
ICICI Bank ₹950.00 ▲ 1.25%
Updated at: 9:50 AM IST, April 4, 2025

Top 5 Losers

Wipro ₹262.25 ▼ 3.66%
IndusInd Bank ₹1,200.00 ▼ 2.50%
Shriram Finance ₹664.15 ▼ 2.11%
Cipla ₹900.00 ▼ 1.95%
Mahindra & Mahindra ₹2,661.50 ▼ 2.62%
Updated at: 9:50 AM IST, April 4, 2025

IT and Tech Sectors Face Pressure from Recession Fears

The Information Technology sector was among the hardest hit, with the Nifty IT index falling 1.5%, marking its second day of consecutive losses. This comes amid growing fears of a U.S. recession, which would directly impact revenue streams of Indian software exporters. Companies with heavy exposure to U.S. clients, like Infosys and TCS, saw notable declines in early trade.

Pharma Stocks Hold Strong Despite Global Volatility

In contrast, the pharmaceutical sector displayed resilience, bolstered by news that Indian pharma exports have been excluded from the new U.S. tariffs. Leading drugmakers like Sun Pharma, Cipla, and Dr. Reddy’s gained ground, offering a cushion to the broader market losses. This exemption is expected to boost investor confidence in the healthcare segment.

Impact of Trump’s Global Tariff Strategy

The broader market tremors stem from U.S. President Donald Trump’s newly introduced trade policy, which includes:

  • A 26% tariff on all Indian imports
  • Higher rates for other Asian countries — 34% for China, 46% for Vietnam
  • Focus on balancing trade deficits through import duties

This move has triggered a wave of concern globally, with analysts warning of a prolonged trade war scenario. While India has not been the worst hit, the effects are still palpable on Dalal Street.

Stock Recommendations Amid Market Uncertainty

Despite the volatility, market experts suggest that Indian equities may weather the storm better than peers in Asia. Analysts have listed stocks like NHPC and Symphony as attractive options for investors due to their strong domestic fundamentals and minimal exposure to global trade dynamics.

What Investors Should Watch

In the coming weeks, traders and investors should keep an eye on:

  • US-India trade negotiations
  • Performance of IT and pharma sectors
  • Updates from the Reserve Bank of India
  • Inflation and GDP growth projections

With markets on edge, cautious optimism and sector-specific strategy may offer the best path forward for Indian investors in April 2025.

Disclaimer: This article is based on publicly available information from various online sources. We do not claim absolute accuracy or completeness. Readers are advised to cross-check facts independently before forming conclusions.

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