India Inc and investors brace for Trump's April 2 tariffs: Key stocks to watch

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Looming concerns around the upcoming ‘reciprocal tariffs’ by US President Trump has kept several sectors on the edge, ranging from automotive to pharma, and sparking fears of a wider trade war, and prompting businesses and investors to assess the impact on specific companies.The big question remains: Which sectors will bear the brunt, which will weather the storm, and where does opportunity lie?After Autos, Concerns for PharmaPharmaceuticals has been a sector where India has had dominant power, in terms of exports. Kranti Bathini, Director of Equity strategy at WealthMills Securities is confident that this is unlikely to be disrupted, and said that Dr Reddy’s and Divi’s Laboratories will be among the key players to watch. "The majority of India’s pharma exports go to the US, so the sector will see some knee-jerk reactions. But let’s be clear, India is one of the best pharma destinations, and overnight disruption isn’t happening."The US imposes almost zero duties on pharmaceutical imports, while India charges around 10% on pharma imports from the US, which has led to industry bodies raise concerns about a potential impact of reciprocal tariffs. "We are concerned that distributors and generic manufacturers cannot absorb the rising costs of broad tariffs," the Healthcare Distribution Alliance (HDA) said.Mehul Sheth, Research Analyst at HDFC Securities said, “Most of the Indian pharma companies are working on thin margins in the US market, ranging 5-20% and tariff absorption could lead to impact on the margin. The way out for Indian pharma companies to be selective in marketed product portfolio and to take exit from low margin product basket.”Stocks in Focus: Sun Pharmaceuticals is among the leading Indian players in the US, while for Cipla, North America contributes around $200 billion of revenue, while Lupin has ongoing projects worth over $200 billion in the US.Read More: Moneycontrol Pro Panorama | US tariffs on autos put industry on edgeGems & Jewellery - Rough Ride?While India isn't the primary target of these tariffs, the jewellery segment is significant in terms of trade volume, making it vulnerable to any disruptions.“Apart from concerns around service exports, gems and jewellery form a bulk of our exports. India might seem like the first target but there’s also Europe appearing to be a bigger concern for the US as they try to tackle tariffs," said W...

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