Stock Market Today: Why NSE, BSE Shrugs Off Trump’s 25% Tariff Bullying?

Indian stock markets opened sharply lower on Thursday after US President Donald Trump announced a 25 per cent tariff on Indian goods along with penalties linked to purchases of Russian crude and defence equipment. The announcement initially triggered selling pressure and concerns over an export slowdown.

At the opening bell, the NIFTY 50 index fell to 24,642.25, down 212.80 points or 0.86 per cent, while the BSE Sensex opened at 80,695.50, losing 786.36 points or 0.97 per cent.

However, markets soon recovered from early losses. The BSE Sensex climbed back into positive territory, trading at 81,620.32, up 138.46 points, or 0.17 per cent. The Nifty 50 also ended higher at 24,897.50, up 42.45 points, or 0.17 per cent, showing resilience despite the tariff shock.

Sectoral and Stock Performance

Early trade saw broad weakness, with Nifty Oil and Gas falling 1.48 per cent and Nifty Consumer Durables down 1.42 per cent. Nifty Auto and Nifty Pharma also dropped more than 1 per cent. In pharma, Lupin fell 2.33 per cent, Ipca Labs dropped 2.97 per cent, and Granules India declined 2.27 per cent. Zydus Lifesciences slipped 1.67 per cent and Natco Pharma lost 1.42 per cent, while Sun Pharma and Cipla also traded lower.

Oil and gas stocks were under pressure too. Hindustan Petroleum fell 2.31 per cent, Indian Oil dropped 1.87 per cent, and Reliance Industries was down 1.19 per cent. ONGC and Oil India declined slightly.

In metals, Hindustan Copper plunged 4.78 per cent, while Vedanta and Tata Steel saw smaller losses. Auto majors like Maruti Suzuki and Ashok Leyland also slipped in early trade.

Despite this, several blue-chip stocks turned positive later in the day. Gains were seen in ITC, Power Grid, Kotak Mahindra Bank, ICICI Bank, Trent, Tech Mahindra, Axis Bank, Mahindra & Mahindra, Bajaj Finserv, Tata Motors, HDFC Bank, SBI, HCL Tech, Ultratech Cement, and BEL.

Impact on Exports and Key Sectors

The tariff threat has raised concerns because the US is India’s largest export market, accounting for 18 per cent of exports, with trade between the two nations reaching $191 billion in 2024.

India recorded a $45.7 billion trade surplus with the US last year. Export-dependent sectors like electronics, pharmaceuticals, gems, and jewellery face the most risk.

Companies such as Reliance Industries, Titan, Sun Pharma, Hindalco Industries, Samvardhana Motherson International, Dixon Technologies, Glenmark Pharma, PI Industries, and UPL are heavily exposed to US trade.

Reliance leads with a market value of Rs 20,03,483 crore, followed by Sun Pharma at Rs 4,09,998 crore and Glenmark at Rs 63,086 crore.

Pharma and agrochemicals remain key focus areas. Trump earlier warned of a 200 per cent tariff on Indian pharma firms unless they set up manufacturing in the US within 12–18 months. Indian pharma earned $9 billion (Rs 16,330 crore) from the US, about 30 per cent of its revenue.

Glenmark derived Rs 3,017.2 crore, or 22.9 per cent, from the US. The agrochemical sector earned $5.7 billion (Rs 6,060 crore) from the US, with PI Industries earning $405 million (Rs 3,359 crore), 42 per cent of its total revenue.

Earnings and Positive Drivers

Hindustan Unilever Ltd (HUL) provided a boost to sentiment after reporting a 5.97 per cent rise in net profit to Rs 2,768 crore for the June quarter, compared to Rs 2,612 crore a year earlier. Revenue from product sales grew 5.15 per cent to Rs 16,296 crore, driven by strong volume growth.

Other major companies releasing earnings include Sun Pharma, Maruti Suzuki, Adani Enterprises, Coal India, Vedanta, Ambuja Cements, Eicher Motors, TVS Motor Company, Cholamandalam Investment, Mankind Pharma, Swiggy, Dabur India, JSW Energy, and PB Fintech.

Also Read: From Pharma to Gems, Key Exports Face the Heat

Resilient Finish Despite Tariff Shock

Despite early volatility, Indian markets shrugged off the tariff shock and ended higher. Strong domestic demand, healthy corporate earnings, and buying in banking and FMCG stocks helped offset export concerns.

Market analysts said that while Trump’s tariffs add near-term risks, India’s resilient domestic economy and investor confidence cushioned the blow.

Explaining the rebound, Sugandha Sachdeva, founder of SS WealthStreet, said, “Indian markets have witnessed a sharp sell-off in the opening periods all because of the imposition of a 25% tariff by US President Trump on Indian goods.

However, the markets have not reacted much, and we have seen a strong rebound from lower levels, as this recent imposition of tariffs is just seen as a bargaining tool by the US President to pressurise India into a more favourable trade deal. As per our expectations, the final tariff rate is likely to be in the 15-20% range after further rounds of negotiations.”

She added, “On the technical charts, Nifty is showing a promising trend wherein we can see very strong support in place at 24,450-24,420 odd levels. Further, Nifty is seen finding strong support at around 24,600, which corresponds to its 50-period moving average on the weekly timeframe."

“As long as these levels hold on the downside, we are likely to see a bounce back in the benchmark index. Having said that, there is an overhead resistance at 25,250 odd levels.”

In case that is surpassed, we are likely to see a further rally in the benchmark index. As of now, the markets are likely to gyrate in the range of 24,450-25,250,” she added. 

Global Market Cues

Asian markets were mixed. Japan’s Nikkei 225 gained 0.7 per cent and Taiwan’s Weighted Index rose 0.34 per cent. However, Singapore’s Straits Times fell 0.66 per cent, Hong Kong’s Hang Seng dropped 1.38 per cent, and South Korea’s KOSPI slipped 0.39 per cent.