Export-Heavy Stocks Decline on Trump's 500% Tariff Signal; Gokaldas Falls 12%
Export-oriented stocks faced significant selling pressure following US political signals about potential 500% tariffs under a proposed Russia sanctions framework. Seafood exporters led declines with Avanti Feeds and Apex Frozen Foods each falling 7%, while Gokaldas Exports plunged 12% among textile stocks. Pharmaceutical and metal exporters also experienced pressure, with broader market indices declining substantially amid concerns about global trade risks.
*this image is generated using AI for illustrative purposes only.
Export-oriented stocks came under sharp selling pressure following fresh political signals from the US that raised fears of extremely high import duties, unnerving investors already concerned about global trade risks. The market reaction was triggered by potential tariffs rising up to 500% under a proposed US sanctions framework, affecting multiple export-dependent sectors including seafood, textiles, pharmaceuticals, and metals.
Political Developments Drive Market Concerns
The sell-off was initiated by a statement from US Senator Lindsey Graham, who indicated that Trump had given approval to a bipartisan Russia sanctions bill. The proposed legislation seeks to sharply raise duties on Russian imports into the United States to at least 500% of their value and could be used as leverage against countries such as India, China, and Brazil that continue to buy Russian oil.
Graham indicated that the bill could be brought to a bipartisan vote as early as next week and expressed confidence in strong cross-party backing. He described the proposed law as a critical diplomatic tool linked to negotiations surrounding the Russia-Ukraine conflict. Trump has separately warned of higher tariffs on Indian goods if New Delhi does not address US concerns related to Russian crude imports, with the US already imposing tariffs of up to 50% on certain Indian products.
Seafood Exporters Face Heavy Losses
Seafood exporters were among the most severely affected sectors during the trading session, with investors fearing that tariff escalation could directly impact shrimp exports to the US market.
| Company | Price Decline |
|---|---|
| Avanti Feeds | 7.00% |
| Apex Frozen Foods | 7.00% |
| Coastal Corporation | 2.00% |
| Sharat Industries | 1.40% |
| Waterbase | 1.00% |
The US remains the most important market for Indian seafood companies, making these stocks particularly vulnerable to trade policy changes and tariff implementations.
Textile and Pharmaceutical Sectors Under Pressure
Textile exporters faced heavy selling as investors priced in risks of weaker US demand and higher landed costs. Gokaldas Exports recorded one of the steepest declines in the sector, plunging 12%. Other textile companies also experienced significant pressure:
| Company | Price Decline |
|---|---|
| Gokaldas Exports | 12.00% |
| KPR Mill | 2.30% |
| Vardhman Textiles | 2.00% |
| Indo Count Industries | 2.00-2.50% |
| Sutlej Textiles | 2.00-2.50% |
| Welspun Living | 2.00-2.50% |
| Kitex Garments | 2.00-2.50% |
Pharmaceutical stocks, traditionally considered relatively defensive exporters, were not spared from the selling pressure. Dr Reddy's Laboratories fell 2.00%, while Sun Pharmaceutical slipped 0.70%, Torrent Pharmaceuticals declined 1.00%, and Cipla edged 0.22% lower. Despite medicines often being shielded from harsh trade barriers, concerns around pricing pressure, regulatory scrutiny, and political rhetoric weighed on investor sentiment.
Broader Market Impact
Metal and auto component exporters also experienced pressure, reflecting concerns that higher tariffs could distort global trade flows and reduce export competitiveness. JSW Steel declined 2.00%, Hindalco Industries slid 4.00%, and Bharat Forge fell 2.00%.
The broader market remained weak, with the Sensex down over 600 points and the Nifty 50 slipping 222 points. Selling pressure continued in megacap stocks, with HDFC Bank and Reliance Industries extending recent losses of up to 1.00%, having already fallen nearly 4.00% earlier in the week.
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