The Indian stock market stumbled Thursday, with benchmark indices closing in the red as global jitters returned following the US’s fresh tariff salvo. IT stocks took the biggest hit, while pharma cushioned some of the blow.
The BSE Sensex shed 322 points to end at 76,295. Earlier in the day, it had dropped as much as 810 points, briefly touching 75,807. On the NSE, the Nifty closed 82 points lower at 23,250, after hitting an intraday low of 23,146. Markets showed signs of recovery in late trade, helped by gains in pharmaceutical shares, but the sentiment remained cautious.
Tariff Trouble: Trump’s Move Triggers Panic
US President Donald Trump’s announcement of reciprocal tariffs on around 60 countries, including India, sent shockwaves through global financial markets. The move, which many see as a retaliatory trade stance, sparked immediate concern over global trade disruptions.
Sumit Pokharna, VP of Fundamental Research at Kotak Securities, didn’t sugarcoat the fallout. “The imposition of very high reciprocal tariffs by the US on its major trading partners, including India, will likely have large negative consequences for global and US GDP growth, inflation, and the profitability of several sectors in India,” he said.
That fear was evident on Dalal Street. Investors pulled money out of export-heavy sectors, especially IT. With the US being a key market for Indian tech companies, the tariff shock couldn’t have come at a worse time.
IT Stocks Sink as Demand Outlook Weakens
India’s IT sector bore the brunt of Thursday’s sell-off. Traders and analysts were already anticipating a weak March-quarter performance, but the fresh tariff scare piled on more pressure.
Two issues are haunting the sector:
-
Fewer billing days due to holidays in the March quarter
-
Weakening demand and deal flow amid global macro uncertainty
Pokharna said that all large Indian IT companies are expected to post sequential revenue declines this quarter. And with American clients now staring at higher costs for offshore services, the situation could get uglier before it gets better.
The Nifty IT index slipped over 2%, with majors like Infosys, TCS, and Wipro all trading in the red. Investors are clearly in risk-off mode when it comes to tech stocks right now.
Pharma Steps Up as Defensive Bets Rise
While tech was tanking, pharma quietly staged a comeback. Defensive stocks often shine during uncertain times, and Thursday was no different.
Sun Pharma, Cipla, and Dr. Reddy’s saw decent gains as investors rotated into healthcare to shield portfolios from volatility. With the global economic outlook clouded by trade wars and inflation risk, pharma might become the go-to sector for the cautious investor.
It wasn’t a blockbuster rally, but it was enough to take the edge off an otherwise bleak trading session.
Auto Stocks Slide After Tariff Blow
Tata Motors was among the worst hit in the auto pack, sliding nearly 3% on the BSE. The stock closed at ₹654.50, after falling as low as ₹652 earlier in the session. The trigger? A fresh wave of tariffs on foreign-made automobiles announced by the Trump administration just days ago.
With its Jaguar Land Rover unit heavily exposed to international markets, Tata Motors has reason to worry. More tariffs mean higher prices, and that could dent demand in key markets.
It wasn’t just Tata Motors. Other auto majors like M&M and Maruti also ended in the red, reflecting growing fears that cross-border car sales might get bumpy.
Here’s a snapshot of how key auto stocks performed:
| Company | % Change | Closing Price (₹) |
|---|---|---|
| Tata Motors | -2.58% | 654.50 |
| Maruti Suzuki | -1.85% | 10,920.00 |
| M&M | -1.46% | 1,870.35 |
| Bajaj Auto | -0.94% | 8,140.00 |
Rupee Rebounds Despite Dollar Strength
Here’s the twist: the rupee, after starting weak, actually ended higher.
It closed the day 22 paise stronger at 85.20 against the US dollar. That came as the dollar lost ground against major global currencies, giving the rupee some breathing room.
For most of the day, the Indian currency traded under pressure, hovering close to 85.50 per dollar. But as the dollar index softened in European trade, the rupee bounced back.
Still, currency traders are cautious. With the Federal Reserve’s next rate decision around the corner, and geopolitical risks piling up, volatility in forex markets is far from over.
Global Crude Cracks Below $73
Amid all the tariff drama, global oil prices quietly slipped.
Brent crude futures dropped 3.68% to $72.19 a barrel on Thursday. Concerns over weakening global demand and fears of a slowdown in trade flows hit energy markets hard.
Analysts say crude could remain under pressure if the tariff fight escalates. Lower oil prices might help India’s import bill in the short term, but they’re also a flashing warning sign about global growth.
