Indian Benchmark Indices Open Lower as Trump’s Tariffs Weigh, Pharma Stocks Rally
About 1,715 stocks are advancing against 948 declining stocks, thus indicating a positive sentiment in the broader market.
Market Update at 10:30 AM: India’s benchmark indices opened lower on Thursday following U.S. President Donald Trump's decision to impose a 26 per cent reciprocal tariff on imports from the country. However, a temporary exemption for pharmaceutical products provided some relief to the market.
At 10:30 a.m. IST, the Nifty 50 was down 0.21 per cent at 23,285, while the Sensex declined 0.33 per cent to 76,388. Trump's tariff measures, announced on Wednesday, are part of a broader plan to introduce a 10 per cent baseline tariff on all trade partners from April 5, with steeper duties on select nations, including a 34 per cent tariff on China from April 9.
Despite the broader market weakness, the Nifty Pharma index surged 3 per cent as the sector received a temporary exemption from the new tariffs. Among its 20 constituents, 19 were trading higher, offering support to the overall Nifty 50 index.
In today’s trade, India VIX was trading around the 13.5 mark, down by 1.18 per cent, indicating a decrease in market volatility.
About 1,715 stocks are advancing against 948 declining stocks, thus indicating a positive sentiment in the broader market.
Pre-Market Update at 7:45 AM: Indian equity markets are likely to open sharply lower on Thursday, mirroring the global sell-off triggered by US President Donald Trump’s announcement of reciprocal tariffs.
Asian markets declined, and US stock futures also tumbled after Trump imposed a 10 per cent baseline tariff on all imports to the US. Additionally, he introduced higher reciprocal tariffs for countries with trade barriers against US goods. India faces a 26 per cent tariff, half of what it imposes on US imports, while automobile imports to the US will now be taxed at 25 per cent.
Gift Nifty was trading around 23,140, reflecting a discount of nearly 299 points from Nifty futures’ previous close, suggesting a gap-down opening for domestic indices.
Despite this, Wall Street closed higher on Wednesday ahead of Trump’s announcement. The Dow Jones gained 235.36 points (0.56 per cent) to 42,225.32, the S&P 500 advanced 37.90 points (0.67 per cent) to 5,670.97, and the Nasdaq Composite climbed 151.16 points (0.87 per cent) to 17,601.05.
In economic updates, US private payrolls rose by 155,000 in March, surpassing expectations. February’s figure was revised upward to 84,000 from 77,000. US factory orders also grew 0.6 per cent in February, following a 1.8 per cent increase in January, marking a 1.5 per cent year-on-year rise.
Crude oil prices dropped amid concerns of a global trade war affecting demand. Brent crude declined 2.63 per cent to USD 72.98 per barrel, while WTI crude slid 2.76 per cent to USD 69.73 per barrel.
Following Trump’s tariff measures, Asian markets plunged. Japan’s Nikkei 225 fell 3.02 per cent, and the Topix index lost 3.19 per cent. South Korea’s Kospi dropped 1.57 per cent, and Kosdaq slipped 0.55 per cent. Hong Kong’s Hang Seng futures signalled a weaker start.
On the domestic front, Indian equities ended higher on Wednesday, driven by gains in financial and technology stocks. The Sensex climbed 592.93 points (0.78 per cent) to 76,617.44, while the Nifty 50 rose 166.65 points (0.72 per cent) to close at 23,332.35.
The U.S. Dollar Index (DXY) dropped to a 24-week low, reaching 102.80. Over the past month, it has declined by 2.63 per cent, while its annual performance shows a 0.47 per cent decrease. The Indian rupee declined in the non-deliverable forward market on Thursday, USD/INR was trading at 85.74.
On April 02, 2025, foreign institutional investors (FII) sold shares worth Rs 1,538.88 crore, while domestic institutional investors (DII) bought shares worth Rs 2,808.83 crore.
There are not any stocks banned for trading in the F&O segment on April 03, 2025.
Disclaimer: The article is for informational purposes only and not investment advice.