Indian Markets Recover in Final Hour Despite Trump Tariff Concerns
Indian equity markets staged a late recovery after initial declines due to US tariff hike concerns. The Nifty 50 closed 0.09% higher at 24,596, while the BSE Sensex ended 0.10% lower at 80,623. Hero MotoCorp led gains with a 4.15% rise. Eleven out of 15 sectors closed positive, with Media, IT, and Pharma leading. The US plans to implement a 25% tariff hike immediately, with another 25% levy to follow in 21 days. Despite market turbulence, the RBI maintained its GDP growth forecast at 6.5%.
*this image is generated using AI for illustrative purposes only.
Indian equity markets recovered sharply in the last hour of trading after declining earlier due to concerns over Trump's tariff hike. The Nifty 50 closed 21 points higher at 24,596 (0.09% gain) while the BSE Sensex ended 79 points lower at 80,623 (0.10% decline). The Nifty had fallen as much as 0.94% during the day before the late recovery.
Market Performance
Hero MotoCorp led gains with a 4.15% rise, while Tech Mahindra, JSW Steel, Wipro, and Eternal all gained over 1%. Eleven out of 15 sectors closed positive, with Media, IT, and Pharma leading gains, while defence, energy, and oil & gas sectors declined. BSE Midcap index rose 0.30% while Smallcap fell 0.18%. Market breadth favored sellers with 2,167 stocks declining versus 1,871 advancing.
Earlier Market Reaction
Indian benchmark indices had opened lower for the third consecutive session, reacting to the United States' decision to impose an additional 25% tariff on exports. The BSE Sensex had declined 178 points or 0.23% to 80,359.00, while the Nifty50 fell 57 points or 0.23% to 24,519.00.
US Tariff Implementation
The revised US tariff structure is set to be implemented in two phases:
- An immediate 25% hike takes effect
- Another 25% levy will be applied 21 days after the order is signed
This phased approach may allow businesses some time to adjust, but the overall impact on Indian exports remains a concern.
Top Laggards and Gainers
Among Sensex stocks, several companies experienced significant drops earlier in the day:
| Company | Performance |
|---|---|
| Adani Ports | ↓ Up to 2% |
| Tata Motors | ↓ Up to 2% |
| Kotak Mahindra Bank | ↓ Up to 2% |
| Eternal | ↓ Up to 2% |
| M&M | ↓ Up to 2% |
| Tata Steel | ↓ Up to 2% |
However, not all stocks were in the red. Some companies managed to open with gains:
- Trent
- ITC
- Sun Pharma
- Bajaj Finserv
- Titan
RBI Maintains Growth Forecast
Despite the market turbulence, the Reserve Bank of India (RBI) has maintained its GDP growth forecast at 6.5%. This decision suggests that the central bank is downplaying tariff-related uncertainties, at least for now.
Market Outlook
As global trade tensions continue to evolve, the Indian stock market may experience further volatility. Investors are advised to stay informed about developments in international trade relations and their potential effects on various sectors of the Indian economy. The late recovery in the markets suggests that investors are still weighing the potential impact of the tariffs against other factors affecting the Indian economy.
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