USTariffsPharma rallies, IT slides, and top gainers emerge despite global pressure

 

The Indian stock market experienced notable fluctuations on April 3, 2025, primarily influenced by recent U.S. trade policies and sector-specific developments. The imposition of new tariffs by the United States has significantly impacted market sentiment and performance.​

 

Market Indices Performance

 

The benchmark indices opened lower in response to the U.S. administration's announcement of a 26% reciprocal tariff on Indian imports. The BSE Sensex declined over 500 points, while the Nifty 50 fell below the 23,300 mark.

 

Impact of U.S. Tariffs

 

On April 2, 2025, U.S. President Donald Trump announced a 26% tariff on Indian imports as part of a broader strategy to address trade imbalances. This tariff is set to take effect on April 9, 2025. Despite this development, Indian markets showed resilience compared to other Asian markets, which faced higher tariff rates.

 

Sectoral Highlights

 

Pharmaceuticals: The pharmaceutical sector emerged as a notable gainer, with the Nifty Pharma index surging nearly 5%. This uptick followed the exemption of pharmaceutical products from the new U.S. tariffs. Companies such as Dr. Reddy’s and Gland Pharma saw significant gains of 6% and 8.5%, respectively.

Information Technology: Conversely, the IT sector faced headwinds, declining by approximately 3.3%. Concerns over reduced client spending in the U.S. contributed to this downturn.

 

Currency Market

 

The Indian rupee weakened against the U.S. dollar, opening at 85.78, a decline of 26 paise from the previous close. This depreciation aligns with broader trends observed in other Asian currencies, influenced by the recent U.S. tariff announcements.

 

Regulatory Developments

 

The Securities and Exchange Board of India (SEBI) proposed limiting the expiry days of all stock derivatives contracts to Tuesdays or Thursdays. This initiative aims to optimize the spacing of expiration dates and enhance market efficiency. 

 

Initial Public Offerings (IPOs)

 

India has surpassed China to become Asia's leading market for IPOs, driven by high stock prices and prominent listings. The National Stock Exchange of India is set to exceed Nasdaq and the Hong Kong Stock Exchange in primary listings by value, marking a significant shift in Asian finance.

 

Top Gainers on April 3, 2025

 

Several stocks outperformed the broader market and posted significant gains, especially in the textile, telecom, and pharmaceutical sectors.

 

Company Sector Closing Price (INR) Change (INR) % Gain
Vardhman Text Textiles - Spinning - Cotton Blended 463.50 61.50 15.30%
Tejas Networks Telecommunications - Equipment 873.00 70.00 8.72%
Raymond Construction - Residential & Commercial Complexes 1,524.00 110.70 7.83%
Trident Textiles - Spinning - Cotton Blended 26.92 1.67 6.61%
KPR Mill Textiles - Readymade Apparels 1,021.50 61.15 6.37%
Birla Corp Cement - Major 1,152.95 59.00 5.39%
Jubilant Pharmo Pharmaceuticals 958.00 48.35 5.32%

 

Investor Outlook

 

Market experts suggest that Indian equities may experience fluctuations influenced by global market reactions. The resilience observed in the Indian markets, despite the imposition of tariffs, indicates a level of investor confidence. However, sectors heavily reliant on exports to the U.S., such as electronics and gems and jewellery, may face challenges due to the new tariff structures. 

The Indian stock market on April 3, 2025, reflected a complex interplay of international trade developments and sector-specific dynamics. While the imposition of U.S. tariffs introduced volatility, certain sectors like pharmaceuticals demonstrated resilience. Investors are advised to monitor ongoing trade negotiations and sectoral performances closely to navigate the evolving market landscape effectively.