Following US President Donald Trump’s announcement of imposition of 25 per cent tariff on all goods coming from India from August 1, textile, IT, auto and pharma stocks in the country traded lower on Thursday.
Among textile-related stocks, Welspun Living tanked 5.27 per cent, Vardhman Textiles declined 3.27 per cent, Arvind Ltd fell by 3.16 per cent and Alok Industries dropped 2.82 per cent on the Bombay Stock Exchange (BSE).
Among the IT stocks, shares of Hexaware Technologies was 1.92 per cent down, Wipro traded 1.44 per cent lower, Infosys dropped 1.34 per cent, Tata Consultancy Services dipped 1.19 per cent, HCL Technologies fell by 1.06 per cent and Tech Mahindra went down by 0.88 per cent. Tracking weak trend in these stocks, the BSE IT index declined 1.29 per cent to 34,577.71.
Among pharma stocks, Jubilant Pharmova dropped 3.15 per cent, Ipca Lab fell 3.28 per cent, Lupin 2.63 per cen), RPG Life Sciences 2.56 per cent, Dr Reddy’s Lab 1.55 per cent, Cipla 1.43 per cent and Sun Pharma 0.81 per cent.
Shares of Maruti Suzuki India, Bajaj Auto, Ashok Leyland, Tata Motors, Mahindra & Mahindra and TVS Motor Company were also quoting lower. The BSE auto index dipped 0.72 per cent to 52,708.33.
US President Donald Trump’s announcement is being seen as a pressure tactic to get New Delhi to agree to demands made by the US, which has, in recent days, managed to seal favourable trade deals with major partners like Japan, UK and European Union.
Experts say investors will reassess their strategies while adopting a wait and watch approach. Sectors like textiles, pharmaceuticals, and automotive components are likely to be the most impacted and may see reduced investor interest in the short-term.
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