Indian markets did not provide clear trends this week, with the Deep Tanda cut off on Tuesday, positively settled today. The IT, Auto toe Pharma sector saw a strong purchase action.
Trump’s decision on mutual tax has introduced a new wave of uncertainty in global trade mobility, said Amit Jain, co-founder of Ashika Global Family Office Fiss Services, that he expects short-term volatility in Indian equity markets, especially in areas.
The tariff regime will start shortly. The Trump administration has announced a 25% tariff on steel and aluminum imports to the US and has been implemented since March 12. Recently 25% tariffs were announced on auto and auto components with an additional 25% duty on light trucks.
Giving the same spirit, Managing Director and CEO of Ski Capital Services Narinder Wadhwa said that Trump’s move could have a significant result for global markets, including the US and India.
Impact on Indian stock markets:
1) FPI flow
HWH Wawa said these reactions could be in the form of FPI outflows. “Indian markets generally respond negatively to US policies, as they increase global risk neglect. FPI can reduce exposure to emerging markets, leading to instability,” said V ADH.
In the last two sessions, foreign institutional investors (FIIs) have sold domestic shares of Rs 6,336. He was net sellers during the January-March period and so far in 2025, who sold shares of Rs 1,22,910 crore.
2) Export oriented sector
V ADH Wawa reiterated Jain’s statements, saying that if tariffs are aiming for major sectors such as pharmaceuticals, Indian companies with significant income Indian companies can withstand headwinds. However, if tariffs focuses primarily on China, Indian exporters can benefit from some trade diversion, he added.
3) the instability of the rupee
The late rally in the Indian rupee has made the currency a 3 -month high, but experts cannot reject the break after the tariff announcement by the United States.
Ski Capital’s VD Dawa said that the risk of risk could weaken the rupee, which affects imported inflation and foreign debt companies.
4) Impact on IT stocks
While no direct impact on the IT sector has been imagined, the tariff war is seen for inflation and can also have an impact on the US economy. These Indian IT services will keep the providers on the edge, the U.S. The lion will be given a share of the incoming income from. The street fears that this may result in tech costs.
Acute
Despite the headwinds, domestic factors can support Indian markets.
Jain keeps India’s strong domestic consumption story intact, which will provide elasticity in their view. Investors have to brace their advice for market fluctuations while not losing long -term opportunities in areas affected by global trade tensions.
V ADH Dawa said domestic stocks could also move in a downturn in the market.
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Contra
Market expert Sandeep Sabarwal expects some short -term disruptions for domestic pharmaceutical companies if tariffs. “Given the fact of what they make … they are not easily hostile to what they spend, all the possibilities will only pass and its impact will only be short -term,” he said.
Referring to the same spirit, Amke said that Auto toe, pharma and electronics have been better placed better than fear, though it seems that India may be the worst hit nations according to widespread mutual differences.
Amca’s analysis found that in the wider tariffs of the country, all US exports may face 10% tariffs, causing $ 6 billion in exports (0.16% of GDP). It can be $ 31 billion in 25% tariffs.
Also Read: April 2 Shodown: 48-hour stock market strategy to get ‘exemption’ from Trump’s tariff pain
(Disclaimer: The recommendations, suggestions, opinions and views given by experts are their own. This does not represent the views of the economic time)
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