Indian benchmark indices, Sensex and Nifty 50, opened lower on Thursday following US President Donald Trump's imposition of a 26% reciprocal tariff on Indian imports. All major sectors declined at the open, with the pharma sector being the sole exception.
As of 9:17 AM, the BSE Sensex had fallen 564 points (0.74%) to 76,053, while the Nifty 50 declined 138 points (0.59%) to 23,193.
President Trump's announcement on Wednesday outlined a 10% baseline tariff on all trade partners, effective April 5, with higher duties on several countries, including a 34% tariff on China starting April 9.
Bernstein describes the new tariffs as a historic step toward a new world order. However, these rates might not sustain for long, and many may not last beyond the second half of 2025. Bernstein expects this move to be the starting point for months of back-channel negotiations with countries.
From the Sensex pack, HCL Tech, Infosys, TCS, Tech Mahindra, and Bharti Airtel were the top losers, falling up to 2.5%. M&M, Adani Ports, HDFC Bank, Maruti, and Tata Motors also opened lower.
In the sectoral space, the Nifty IT index dropped 2.5%, weighed down by Persistent Systems, Coforge, and Mphasis.
Bernstein expects the biggest impact to come from a decline in U.S. discretionary spending, which could hurt IT firms. Due to rising U.S. recession risks, it has downgraded IT to equal-weight, while Healthcare has been upgraded to equal-weight as it is expected to face limited impact from the tariffs.
India, however, could benefit from China’s losses under these changes, Bernstein noted.
Meanwhile, the Nifty Pharma index jumped 4.5%, led by gains of up to 8% in Gland Pharma, Aurobindo Pharma, Lupin, and Sun Pharma.
Global Markets
Stocks dived and investors scrambled to the safety of bonds, gold, and the yen on Thursday as US President Donald Trump unveiled a bigger-than-expected wall of tariffs around the world's largest economy, upending trade and supply chains.
Nasdaq futures tumbled 3.3%, and in after-hours trade, some $760 billion was wiped from the market value of Magnificent Seven technology leaders. Apple shares, hit hardest as the company makes iPhones in China, were down nearly 7%. S&P 500 futures fell 2.7%, FTSE futures fell 1.6%, while European futures fell nearly 2%.
Japan's Nikkei was down 2.8% after earlier sliding to an eight-month low, with nearly every index member falling as shippers, banks, insurers and exporters copped a beating. MSCI's broadest index of Asia-Pacific shares outside Japan fell more than 1%.
FII/DII Tracker
Foreign Institutional Investors (FIIs) extended their selling streak for the third consecutive session on April 2, offloading equities worth Rs 1,538 crore. In contrast, Domestic Institutional Investors (DIIs) remained net buyers for the fourth consecutive day, purchasing equities worth Rs 2,800 crore.
Oil Impact
Oil prices dropped by $2 on Thursday after U.S. President Donald Trump announced reciprocal tariffs on trading partners, stoking concerns that a global trade war may dampen demand for crude.
Brent futures fell by $1.97, or 2.63%, to $72.98 a barrel by 0033 GMT. U.S. West Texas Intermediate crude futures were down $1.98, or 2.76%, to $69.73.
Rupee vs Dollar
The Indian rupee fell by 26 paise to 85.78 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined by 0.75% to 103.03.
(With inputs from agencies)
As of 9:17 AM, the BSE Sensex had fallen 564 points (0.74%) to 76,053, while the Nifty 50 declined 138 points (0.59%) to 23,193.
President Trump's announcement on Wednesday outlined a 10% baseline tariff on all trade partners, effective April 5, with higher duties on several countries, including a 34% tariff on China starting April 9.
Bernstein describes the new tariffs as a historic step toward a new world order. However, these rates might not sustain for long, and many may not last beyond the second half of 2025. Bernstein expects this move to be the starting point for months of back-channel negotiations with countries.
From the Sensex pack, HCL Tech, Infosys, TCS, Tech Mahindra, and Bharti Airtel were the top losers, falling up to 2.5%. M&M, Adani Ports, HDFC Bank, Maruti, and Tata Motors also opened lower.
In the sectoral space, the Nifty IT index dropped 2.5%, weighed down by Persistent Systems, Coforge, and Mphasis.
Bernstein expects the biggest impact to come from a decline in U.S. discretionary spending, which could hurt IT firms. Due to rising U.S. recession risks, it has downgraded IT to equal-weight, while Healthcare has been upgraded to equal-weight as it is expected to face limited impact from the tariffs.
India, however, could benefit from China’s losses under these changes, Bernstein noted.
Meanwhile, the Nifty Pharma index jumped 4.5%, led by gains of up to 8% in Gland Pharma, Aurobindo Pharma, Lupin, and Sun Pharma.
Global Markets
Stocks dived and investors scrambled to the safety of bonds, gold, and the yen on Thursday as US President Donald Trump unveiled a bigger-than-expected wall of tariffs around the world's largest economy, upending trade and supply chains.
Nasdaq futures tumbled 3.3%, and in after-hours trade, some $760 billion was wiped from the market value of Magnificent Seven technology leaders. Apple shares, hit hardest as the company makes iPhones in China, were down nearly 7%. S&P 500 futures fell 2.7%, FTSE futures fell 1.6%, while European futures fell nearly 2%.
Japan's Nikkei was down 2.8% after earlier sliding to an eight-month low, with nearly every index member falling as shippers, banks, insurers and exporters copped a beating. MSCI's broadest index of Asia-Pacific shares outside Japan fell more than 1%.
FII/DII Tracker
Foreign Institutional Investors (FIIs) extended their selling streak for the third consecutive session on April 2, offloading equities worth Rs 1,538 crore. In contrast, Domestic Institutional Investors (DIIs) remained net buyers for the fourth consecutive day, purchasing equities worth Rs 2,800 crore.
Oil Impact
Oil prices dropped by $2 on Thursday after U.S. President Donald Trump announced reciprocal tariffs on trading partners, stoking concerns that a global trade war may dampen demand for crude.
Brent futures fell by $1.97, or 2.63%, to $72.98 a barrel by 0033 GMT. U.S. West Texas Intermediate crude futures were down $1.98, or 2.76%, to $69.73.
Rupee vs Dollar
The Indian rupee fell by 26 paise to 85.78 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined by 0.75% to 103.03.
(With inputs from agencies)
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