Indian stock markets closed lower on April 3 but managed to outperform other Asian indices, as the US imposed a 26% tariff on Indian exports.

Market Performance Snapshot

• Sensex fell 0.42% to 76,295 points

• Nifty 50 dropped 0.38% to 23,243 points

• Nifty Midcap 100 gained 0.26% to 52,186 points

• Nifty Smallcap 100 rose 0.58% to 16,255 points

Why Did Indian Markets Perform Better?

Pharma Stocks Shine

• Trump exempted drug exports from tariffs, boosting pharma stocks.

• India’s pharma sector has massive exposure to the US market, driving gains.

India Among Least-Tariffed Asian Exporters

• Trump’s 26% duty on India is lower than China (54%), Vietnam (46%), and Bangladesh (37%).

• This could benefit Indian textile & EMS stocks as US buyers look for alternatives.

Broader Markets Show Strength

• Midcaps & smallcaps gained, indicating domestic investor confidence.

• Electronics & textile sectors saw buying interest, anticipating export opportunities.

Global Market Reaction

• US markets faced selling pressure, as fears of a recession grew.

• Asian indices dropped sharply, with China’s markets among the worst hit.

• Supply chain disruptions, inflation risks, and trade tensions added to global uncertainty.

Defense & Engineering Stocks Gain

• Kirloskar Oil Engines rose sharply after securing a ₹270 crore contract from the Indian Navy to design a 6MW medium-speed marine diesel engine under the Make-I initiative.

• Bharat Electronics gained after receiving a ₹593.2 crore contract from the Indian Air Force for Akash Missile System maintenance.

• Interarch Building advanced as it secured a ₹300 crore contract for pre-engineered steel building systems.

Pharma Stocks Surge Amid US Tariff Exemptions

• Gland Pharma, Marksans Pharma, Aurobindo Pharma, and Lupin rose over 6% as the US exempted the pharmaceutical sector from the 27% reciprocal tariff on Indian imports.

• The move provided relief to Indian pharma exporters, with domestic and global investors reacting positively.

Banking Stocks Rally on Strong Q4FY25 Performance

• Punjab National Bank rose as its domestic business hit ₹25.8 lakh crore, up 13.2% YoY, while global deposits rose 14.3%.

• IDFC First Bank surged as total deposits rose 22.7% YoY to ₹4.8 lakh crore, while loans and advances grew 20.3% YoY.

• AU Small Finance Bank gained as total deposits surged 27.2% YoY, while gross advances grew 25.8% YoY.

• Bank of Baroda climbed as global business grew 11.4% YoY to ₹27 lakh crore, with domestic deposits up 9.3% YoY.

Real Estate & Manufacturing Gains

• Mahindra Lifespace Developers surged after securing the redevelopment of two societies in Andheri West, Mumbai, with expected sales revenue of ₹1,200 crore.

• Gokaldas Exports soared as India's 27% reciprocal tariff on garments was the lowest among key exporters, compared to Vietnam (46%), Bangladesh (37%), and China (54%).

IT Stocks Decline Amid US Trade Concerns

• TCS, Infosys, HCL Tech, and Tech Mahindra fell over 2.7% as concerns over higher US inflation led to fears of reduced IT spending by American firms.

• The US 27% tariff hike on Indian exports could impact Indian IT companies, which rely heavily on US-based clients.

Chemical Stocks See Mixed Reactions

• SRF and Navin Fluorine declined after higher US tariffs on chemicals raised concerns over Indian exports.

• However, India's 27% tariff rate was similar to or lower than competitors like China (34%) and Japan (24%), offering a relative advantage.

Other Notable Stock Movements

• Avanti Feeds plunged as the US imposed a 27% tariff on Indian shrimp imports, significantly impacting its North American revenue.

• Dabur India fell sharply due to flat Q4 revenue growth and an expected margin decline of up to 175 bps.

• Poonawalla Fincorp surged as assets under management rose 42.2% YoY to ₹35,550 crore.

• Hero MotoCorp gained as monthly wholesales rose 12% YoY in March, supported by higher scooter sales and strong exports.

• Bajaj Finance declined after receiving an RBI 'letter of displeasure' over co-branded credit card compliance issues.

• Bharat Forge fell as its Class 8 truck orders in North America hit a seven-month low, dropping 14% YoY.

• Tejas Networks continued its uptrend as BSNL expanded its 4G and 5G infrastructure, benefiting from its role as a key equipment supplier.

Economic & Policy Updates

• The Indian government received a record ₹74,016.7 crore in dividend receipts from CPSEs in FY25, exceeding FY24's ₹63,749.3 crore.

• JP Morgan reported that India's equity market is better positioned than other Asian markets to absorb the impact of US tariffs, as India’s exports to the US account for just 2% of its GDP.

The market remains highly volatile, with sectors reacting differently to global trade policies and corporate earnings.

The Current active IPO are Infonative Solutions Limited,Spinaroo Commercial Limited.

The Closed IPOs are  Retaggio Industries Limited.