Trump India tariff: Amid deadlock in the India-US trade deal, the US administration announced a 25% tariff on Indian imports, which is expected to put the Indian stock market under pressure on Thursday. Market experts expect pressure in the IT, textile, auto, and pharma segments. However, pressure on some export-oriented companies from the gems and jewellery and engineering stocks can’t be denied.
Trump India tariff impact
Explaining how Trump’s tariff would impact the Indian stock market today, Avinash Gorakshkar, SEBI-registered fundamental expert, said, “After US President Donald Trump announced a 25% tariff on India yesterday, we are expecting pressure in the IT, textile, auto, and pharma segments. However, there can be some impact on export-oriented companies with exposure in the US, especially the gems and jewellery, and engineering stocks.”
IT stocks that may take a beating
On IT stocks that may come under the selling pressure during the Thursday session, Avinash Gorakshkar said, “In the IT segment, all large-cap stocks — TCS, Infosys, Wipro, HCL Tech, etc. — have exposure in the US market and a 25% tariff is expected to put pressure on these Indian IT majors. However, weakness in the Indian National Rupee (INR) due to Trump’s tariffs is expected to pare some pressure on their balance sheet, if the India-US trade deal isn’t inked soon.”
Gorakshkar said that some pressure can be expected in the gems and jewellery majors as well. In this segment, Titan, PC Jeweller, and Kalyana Jeweller may see the selling heat during Thursday deals.
Top stocks that may take a hit
Mahesh M Ojha, AVP — Research at Hensex Securities, said, “Indian pharma and auto companies draw a good amount of business from the US market, and the 25% tariff announced by the US administration is expected to put some pharma and auto majors under pressure. In the pharma segment, Sun Pharma, Dr, Reddy’s, Lupin, Aurobindo Pharma, and Cipla have good exposure to the US market, and hence, these pharma stocks are expected to come under selling pressure during the Opening Bell.”
“In the auto segment, Tata Motors, Samvardhana Motherson, Bharat Forge, and Bosch India are expected to come under pressure. However, shares of Sundram Fasteners and Endurance Technologies may also receive some beating during the Thursday session,” said Ojha.
Other export-oriented stocks
Avinash Gorakshkar said that textile, engineering and some other segment stocks may also feel the selling heat and listed out the following segments and the stocks of these segments:
Textile: KPR Mill, Arvind, Page Industries, Vardhman Textiles, and Gokaldas Exports.
Engineering: BHEL, Thermax, ABB India, Havells, Polycab.
Agro exports: KRBL, Avanti Feeds, and LT Foods.
Trump’s tariff news
Contrary to widespread expectations and dashing New Delhi’s hopes of a relatively better trade deal, US President Donald Trump, on July 30, announced a 25 per cent tariff on “friend” India, to be effective from August 1. The 25 per cent tariff excludes a penalty due to India’s energy and defence ties with Russia.
Trump accused India of imposing higher tariffs on US imports and also having the “most strenuous” trade barriers.
“While India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the world, and they have the most strenuous and obnoxious non-monetary trade barriers of any country,” Trump said on his social media platform Truth Social.
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