Indian Stock Market Partial Recovery After Trump Tariff Shock|
Indian Stock market showed some recovery today after the shock of 27% tariffs by Trump Administration on April 2. But IT and Auto stocks got the most impact, due to which Sensex and Nifty closed down.
How was the market performance today?
Sensex closed down 322 points at 76,295. Nifty closed down 82 points at 23,250. Nifty IT index fell 4.21% (fall of 1526 points). BSE IT index fell 1348 points to 34,293.
IT and Auto sector stocks took the most damage, because analysts believe that Trump’s tariffs can slow down the US economy, which will have a direct impact on the demand for Indian IT services.
IT Stocks suffered the most damage
Infosys (-3.41%)
TCS (-3.98%)
Tech Mahindra (-3.79%)
HCL Tech (-3.71%)
These stocks were the biggest losers of Sensex because the slowdown in the US can slow down the revenue growth of Indian IT companies.
Auto Stocks also under pressure
BSE Auto Index fell 548 points to close at 47,412. Shares of Bharat Forge, Bajaj Auto, Tata Motors, Ashok Leyland, TVS Motor fell. Trump tariffs could hurt Indian auto exporters, so investors sold these stocks.
Why was there some recovery in the market?
The tariff impact is limited for India – Analysts say that India is subjected to a 27% tariff, while Vietnam (46%), China (34%) and Taiwan (32%) have a much higher impact. This could give India a little competitive edge in the global market. There was buying in Power Pharma and Cement stocks – Some Sensex stocks such as PowerGrid, Sun Pharma, UltrTech Cement, NTPC, Asian Paints and Nestle rose by up to 4.34%.
Positive movement in BSE midcap and smallcap
BSE midcap index rose 128 points to 41,796
BSE smallcap index rose 358 points to 47,494
What are the experts saying?
Support Levels & Resistance Zones. Nandish Shah (HDFC Securities): Nifty’s 23129 level is an important support. If it breaks, the next support will be at 22917. If Nifty crosses 23400, the rally can go up to 23650.
Sharikant Chouhan (Kotak Securities): The market is still in a non-directional phase. If Sensex goes above 77000, it can bounce back. If it falls below 75800, then the selling pressure may increase.
Ajit Mishra (Religare Broking): It is time to find stock specific opportunities in the market. If Nifty goes below 23100 then the selling pressure may increase.
Rohit Murarka (Kotak Cherry): In the short term the market will remain volatile, but in the long term India can find new markets and strengthen global competition.
What happened in the market today?
72 stocks touched their 52 week high. 52 stocks reached 52 week lows. 5 stocks went on the upper circuit. 8 stocks went on the lower circuit.
What to expect next?
The market may remain volatile in the short term, but India may benefit in the long term as high tariffs have been imposed on China, Vietnam and Taiwan. IT and Auto stocks will still remain under pressure, but there may be opportunities in Power Pharma and Cement sectors. The range between 23150-23350 is important for traders. A fall in this range may lead to further correction, and a rise may continue the rally.
Do you think Indian stock market will be able to handle the impact of Trump’s tariffs? Share your opinion in the comments.
