US Tariff Impact on Nifty 50, Sensex and Stock Market: Summary

Nifty 50, Sensex, and Stock Market Today: After US President Donald Trump announced tariffs on several nations, Indian equity indices benchmarked to the US markets traded lower on Thursday. 

President Trump, on April 2, triggered a new tariff framework that placed base taxation of 10% on all US imports and additional surcharges onto other countries with a trade surplus. The US now subjects India to a staggering 27% tariff.

Sensex fell by 0.42% to close at 76,295.36. The Nifty 50 also supported 23,250.10, decreasing by 0.35%, in comparison to its last closure affecting the whole Indian Stock Market.

Top Losers Today

• 18 out of the 30 constituent stocks of the BSE Sensex decreased, with TCS, HCL Tech, Tech Mahindra, Infosys, and Tata Motors declining by 4%. 

• The Nifty IT index was the least performing sectoral index on the Nifty, closing down by 4.21%, pulled down by Persistent Systems, Coforge, TCS, and Mphasis. Auto, Oil & Gas, as well as Realty also remained laggards.

Top Gainers Today

• On the other hand, Power Grid Corporation, Sun Pharma, Ultratech Cement, NTPC, and Asian Paints were up 4.5%, which made them the heaviest, while they also were the top diluters.

• Shares of the Small-caps outperformed the broader markets with the Nifty Smallcap100 index rising 0.58%.

• In contrast, shares of Pharma companies topped as the Nifty Pharma Index increased by more than 2.25%. Other notable gainers included Banks and other segments of Healthcare, FMCG, and Consumer Durables which increased by up to 1.94%.

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Global Cues

Stocks plunged while investors rushed into bonds, gold, and the yen on Thursday when US President Donald Trump placed an overly aggressive wall of tariffs around the globe’s largest economy, disrupting trades and supply chains.

US Stock Market After Tariffs

• The US Stock Market Indices Nasdaq futures and S&P 500 futures faced a huge decline with FTSE futures and Nikkei of England and Japan respectively.

• Dow Jones Industrial Average-related futures dropped 1,064 points or 2.5%.

• Nasdaq futures fell by 4% and during after-hours trading, the market cap of the Magnificent Seven technology leaders saw a decrease of about $760 billion. Shares of Apple, which is heavily affected due to China's manufacturing, are faced with a decrease of almost 7%.

• S&P 500 futures lost 3.3%, and FTSE futures were down 1.8%, along with the European ones which declined by nearly 2%.

• The Nikkei in Tokyo was down by 3.9%, reaching an 8 month low. Almost all members of the index dropped as shippers, banks, insurers, and exporters were heavily costed.

• As investors anticipated slower growth in the U.S. interest rate futures began to factor in an increase in the likelihood of rate cuts in the coming months. This caused yields on the 10 year Treasury to decrease by 14 basis points to a new five-month low of 4.04%.

Conclusion

A quick surge in the US tariff hike has dampened global markets, with Indian indices like Nifty 50 and Sensex racking up some considerable losses. The IT and auto sectors suffered the most, while pharma and small-caps remained slightly more resilient. 

On the other hand, the sell-offs in the US across the board, including Nasdaq and Dow, showed increased investor concerns. With fears of slowing economic development gathering steam, bond yields declined, which suggests rate cuts are on the cards.

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Disclaimer: No buy or sell recommendation is given. No investment advice it is. Information is taken from various websites. Always take an eligible financial expert’s advice before financial decisions.