Trump Tariffs : Potential Effect On The Stock Market Of India

Potential effect on the stock market of India from the implementation of tariffs: Loss of Rs 2 lakh crore in 10 seconds! Investors became poor from Trump Tariffs

America’s President Donald Trump announced a 26% tariff to India on Wednesday. Trump said that India imposed tariffs from 52% to America, so America will impose 26% tariffs on India.

He said that he will impose ten percent tariff on all imported products :Trump Tariff

He said that he will impose ten percent tariff on all imported products and will impose additional taxes on 60 countries. Many major areas including agricultural tariffs on Indian products by America can affect many major areas including agricultural, pharma, chemicals, drugs, medical devices, electrical and machinery.

The SENSEX NIFTY BSE Sensex fell 538.90 points or 0.72 percent to 76,084.09. Nifty fell 139.95 points or 0.60 percent to 23,192.40.

Due to the 26% reciprocal tariff of the US administration, India’s stock investors have been poor in 10 seconds of Rs. 1.93 lakh crore in 10 seconds.

Investor’s assets suggested by BSE Market Capitalization, Rs 4,12,98,095 rupees from Rs 4,12,98,095 to Rs 4,11,04,925 crore. However, India performed better than Asian colleagues, because the new tariff series, which is collectively referred to as “Liberation Day” tariff, pharma stocks were exempt. They also excluded any more tariffs and auto and auto component imports on steel and aluminum.

The BSE Sensex fell 538.90 points or 0.72 percent to 76,084.09. Nifty fell 139.95 points or 0.60 percent to 23,192.40.

Experts say that the duty difference in these fields is much more, which can impose the excess import duty at the same rate at the same rate. The tariff will be as high as the difference, this field will be more affected.

According to the analysis of the Economic Research Institute Global Trade Research Initiative (GTRI), the highest impact in agricultural sectors will be on fish, meat and processed seafood. In 2024, its exports were $ 2.58 billion and it will face the duty difference of 27.83%. The main export of America will be significantly less competitive from the tariff imposed by the America.

Potential effect on economy : Trump Tariff

1. Reduction in exports: Increasing tariffs will be more likely to send goods to America for Indian companies, which can decrease their demand.

Currency instability: Increasing trade with the United States can weaken Indian rupee, which can be expensive and inflation can increase.

Decrease in investment: Due to increased trade stress, global investors can avoid investing in India, which can affect the Indian stock market.

Trade war hazard: Experts have warned that if the global trade war broke out, it can increase the instability in the Indian economy.

India is capable of facing shocks : Trump Tariff

Experts are estimated that India will be the fastest growing economy in developed and emerging G-20 countries. According to a new report, the low export dependency on the US market (only 2 percent of GDP) makes it capable of facing potential adverse effects. Rating agencies have estimated 6.5% of the development rate of 6.5% for the financial year 2025-26, which is highest in comparison to other countries.

Will be focused on export markets : Trump Tariff

However, experts also say that despite all this, India will have to make some strategies to remove this crisis. Likewise, other export markets will also have to beware. Emphasize on raising trade with Europe, Africa and Asian countries. Local industries will have subsidized and tax relief so they can face the effect of the new tariff.

The most effect can be found on Sector Tariff Difference Annual Turnover

Electronics and Telecom 7.24% $ 14.39 Billion

Pharma products 10.90% $ 12.72 billion

Gold, silver and jewels 3.32% $ 1.88 billion

Machinery and computers 5.29% $ 7.10 billion

Chemicals (except pharma) 6.05% $ 5.71 billion

Cloth, yarn and carpet 6.59% $ 2.76 billion

Fish, meat and seafood 27.83% $ 2.58 billion

Grain, vegetables and spices 5.72% $ 1.91 billion

Ceramics and glass 8.27% $ 1.71 billion

Rubber products 7.76% $ 1.06 billion

Processed foods, sugar and cocoa 24.99% $ 1.03 billion

Dairy products 38.23% $ 181.49 million

Impact on these countries : Trump Tariff

It is believed that the highest impact of the new tariff will fall on certain countries. The US Trade Representative Office has been listed in a list of 21 countries with which America trade is not balanced. These countries Argentina, Australia, Brazil, Canada, China, European Union, India, Indonesia, Japan, South Korea, Malaysia, Mexico, Russia, Saudi Arabia, South Africa, Switzerland, Taiwan, Thailand, Turkey, are Britain and Vietnam.

On.Ex, Expert : Trump Tariff

“Despite the effect soon, we believe that this is likely to be the beginning of long-lasting negotiations and scope for immediate relief in the tariff imposed. The potential India-US trade deal can eventually solve some issues related to tariffs and market access from both sides, in which India is also committed to buying more of US crude oil and conservation, “m. Expert said.

In Asia, Japan’s Nikki decreased nearly 4 percent, while Hong Kong’s hangeness decreased by 1.64 percent. The markets of Korea and Australia declined to 2 percent. In fact, the Dow Jones Futures was trading on 867 points or 2.02 percent to 41,625, because inflation fear and its negative effect on America became more intense.

The US President imposed tariff from 34% on China and 46% on Japan, UK, Vietnam, South Korea and Taiwan. USA claimed that he is Brazil (11.2 percent), China (7.5%), European Union (5%), India (17%) and Vietnam (9.4%), according to many higher rates, world’s lowest easy average Most-fool-Nation (MFN) has retained a tariff rates.

On. Expert said: “26% of the same tariffs on Indian exports are imposed by 26% of the same tariffs, despite a significant strategic restructuring of trade mobility towards the end of bilaterability and multiple-based tactics – the work of protectionism less, trade negotiations more than one high- Gambling of stake.”

Market analyst of VT Markets “Me. Expert” noted that the top US automakers share in After-Ours trading faster, more than 7% of General Motors, Ford 4.6 percent and Stalettis declined 4 percent. Japan’s automakers also declined, Nissan, Toyota and Honda’s share declined 2-3 percent while Hyundai Motor and Kiaa’s shares in South Korea declined nearly 4 percent.

“We can expect a big impact on the pharma industry. When a specific tariff percentage is not given detailed information, there is an important market for the US Indian pharmaceutical export. Export revenues are likely to decrease in increased tariffs. This is one of the other fields that will be very impressed. America has prescribed a potential tariff on IT services, a field where India exports significantly, “m. Expert said.

MOFSL said that Nifty is currently trading on 20 times the earnings of its FY26, which is close to its long-term average 20.6 times, which offer limited closest periods.

On. Expert : Trump Tariff

“We believe that any improvement from this point will be based on the stability of global and local macroeconomic situations, compared to the expectations of the earnings. Considering the current macro and microeconomic environment, the financial year 26 corporate earnings estimates are somewhat optimistic and can be reduced to more, “he said

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