Indian stock markets opened in negative territory on Wednesday, reacting to the implementation of 50% US tariffs on Indian goods. The Nifty 50 index was trading at 24,586.80, down 125.25 points (0.51%), while the Sensex stood at 80,378.10, lower by 408.44 points (0.51%) in early trade.

Impact of US Tariffs

The new tariffs have significantly impacted India's trade position with the United States. India's effective tariff rate on exports to the US has jumped to 34%, now second only to China. This move is expected to put immediate pressure on export-dependent sectors, including textiles, jewellery, leather, and seafood.

Sector-wise Performance

Despite the overall negative sentiment, some sectors showed resilience:

• Pharma, electronics, and steel stocks demonstrated strength, likely due to exemptions from the tariffs.
• Asian Paints emerged as a top gainer, rising 1.55% to ₹2,519.90.
• Shriram Finance led the losers, falling 2.47% to ₹580.00.

Institutional Activity

The market saw significant institutional activity:

Technical Outlook

Technical analysts have warned that a sustained break below the 24,600 level could potentially drag the Nifty toward 24,450. Increased volatility is expected due to the monthly derivatives expiry.

Corporate Update: Asian Paints

Asian Paints Limited announced that it would be transferring unclaimed equity shares to the Investor Education and Protection Fund (IEPF) Authority. This move is in compliance with Section 124 of the Companies Act, 2013, and the related rules. Shareholders who have not claimed their dividends for seven consecutive years or more are advised to claim them by November 7, 2025, to avoid the transfer of their shares to the IEPF Authority.

As markets navigate through these challenging times, investors are advised to stay vigilant and monitor both global trade developments and domestic corporate actions that could impact stock performance.

Indian stock markets experienced a significant downturn today, with benchmark indices registering sharp declines. The Sensex plummeted 652.58 points (0.80%) to close at 80,983.33, while the Nifty fell 196.10 points (0.79%), ending the day at 24,771.65. The primary catalyst for this market turbulence was the United States' announcement of substantial tariff hikes on Indian goods.

US Tariff Announcement

The United States has issued a draft notice outlining plans to impose tariffs of up to 50% on Indian goods, set to take effect from Wednesday. This move represents a significant escalation in trade tensions between the two nations. President Donald Trump announced an additional 25% tariff specifically targeting Indian exports related to India's Russian oil purchases, effectively doubling the existing levies to 50%.

Implementation and Diplomatic Fallout

The Department of Homeland Security has released implementation procedures for these new tariffs. In a related development, a planned visit by trade negotiators to New Delhi has been cancelled, further highlighting the strain in bilateral trade relations. The new duties are scheduled to come into effect from 12:01 a.m. EDT Wednesday.

Impact on Indian Exporters

This tariff hike places Indian exporters in a challenging position, as they now face some of the highest US duties globally. The rates imposed on Indian goods now exceed those applied to competitors from countries like Vietnam and Bangladesh, potentially impacting India's export competitiveness in the US market.

Market Pressures

The sharp decline in Indian markets can be attributed to several factors:

1. Tariff Concerns: The announcement of increased US tariffs has raised concerns about the potential impact on Indian exports and the broader economy.

2. Currency Movements: Fluctuations in currency exchange rates have added to market volatility.

3. Foreign Investor Sentiment: Selling pressure from foreign investors has contributed to the market decline.

Market Data Summary

The Indian stock market's reaction reflects serious concerns among investors about the potential economic impact of these tariff hikes. As the situation develops, market participants will be closely monitoring further developments in US-India trade relations and their implications for various sectors of the Indian economy.