The Indian stock market closed in the red on April 3, reacting negatively to US President Donald Trump's announcement of a 27% tariff on Indian exports. This decision impacted various sectors, with IT, auto, and shrimp feed stocks taking a major hit, while pharma and textile stocks recorded strong gains.

Market Summary

The Sensex fell by 322 points, closing at 76,295.36, while the Nifty 50 declined by 0.35% to end at 23,250. Among sectoral indices, Nifty Pharma outperformed with a gain of over 2%, whereas Nifty IT and Nifty Auto saw steep declines.

IT Stocks Take a Hit

The Nifty IT index plunged over 4% due to concerns over increased export tariffs. Persistent Systems was the worst performer, falling nearly 10% to Rs 4,799 per share. Other major IT stocks including TCS, Infosys, HCL Tech, and Tech Mahindra dropped over 3%, reflecting investor fears over reduced revenue from the US.

Auto Sector Stocks Decline

The auto sector faced headwinds, particularly Tata Motors and auto component makers, as Trump announced a 25% tariff on foreign-made automobiles. Tata Motors and Hyundai fell around 2%, while auto ancillary stocks like Sona BLW Precision, Bharat Forge, and Samvardhana Motherson dropped up to 3%.

Shrimp Feed Companies See Major Losses

Indian shrimp feed companies were among the biggest losers as they have a high exposure to US markets. Avanti Feeds shares crashed by 15%, closing at Rs 754.95, while Apex Frozen Foods fell by 4% to Rs 207.49. Coastal Corp shares tumbled over 8%, ending at Rs 36.30.

Chemical Stocks Under Pressure

The chemical sector also faced selling pressure, with stocks like Navin Fluorine, SRF, and Deepak Nitrite declining up to 2%. The concern over higher duties and potential demand slowdown weighed on these shares.

Metal Stocks Face Global Demand Worries

With Trump’s tariffs raising fears of disrupted global trade, metal stocks fell sharply. Vedanta was the top loser in the sector, plunging nearly 4%, while Hindalco and JSW Steel dropped over 1%. Tata Steel, Jindal Steel & Power, Hindustan Copper, and National Aluminium all recorded losses, albeit in a smaller range.

Pharma Stocks Shine Amid Market Sell-Off

While most sectors struggled, the pharmaceutical industry saw a surge, as the White House excluded pharmaceutical products from the newly announced tariffs. Nifty Pharma rose 2.25%, with IPCA Labs, Sun Pharma, and Lupin jumping up to 5%. This sector’s resilience was a key highlight amid an otherwise weak market.

Textile Stocks Outperform

Surprisingly, textile stocks rallied despite the 27% US tariff on Indian imports. This was because tariffs on China (34%), Vietnam (46%), and Bangladesh (37%) were even higher, making Indian textile products more competitive. Grasim Industries, Trident, Welspun Living, and Vardhman Textiles recorded gains of up to 20%.

IDBC First Bank and Poonawalla Fincorp Buck the Trend

Despite the broader market decline, IDBC First Bank and Poonawalla Fincorp surged due to strong business updates for the January-March quarter of FY25. IDBC First Bank shares climbed nearly 6% to Rs 60, marking their highest level in over a month. Poonawalla Fincorp surged over 5% to Rs 364, hitting its highest level in 2025 so far.

Conclusion

The Indian stock market faced volatility as US tariffs on Indian exports triggered major sectoral movements. While IT, auto, shrimp feed, chemical, and metal stocks saw heavy losses, pharma and textile stocks provided some relief. Investors remain cautious as they assess the long-term impact of these trade restrictions on Indian businesses.

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

The Closed IPOs are  Retaggio Industries Limited.