Benchmark indices closed in the red on April 3 after US President Donald Trump announced sweeping reciprocal tariffs on a number of countries, with India being charged 27 percent on its exports. Sensex closed nearly 322 points lower at 76,295.36, while the Nifty 50 index dropped nearly 0.35 percent to end the session at 23,250.
Pharma stocks recorded strong gains, with Nifty Pharma closing over 2 percent higher at 21,423.55, while Nifty Auto and Nifty IT significantly crashed. TCS, Tech Mahindra, HCL Tech, Infosys, Tata Motors and Kotak Mahindra Bank were the top losers on Sensex. Power Grid and Sun Pharma were the top gainers.
IT stocks
The Nifty IT sank over 4 percent on April 3, after US President Donald Trump imposed a broad-based tariff of 27 percent on all Indian exports. Persistent shares were the top loser on the index, closing nearly 10 percent lower at Rs 4,799 apiece, while Coforge dropped nearly 8 percent. TCS, Infosys, HCL Tech, Tech Mahindra and other IT stocks dropped over 3 percent.
Tata Motors, ancillary shares
Shares of auto component makers as well as Tata Motors were the worst-hit among mobility companies on April 3, fearing the worst impact of the reciprocal tariffs announced by US President Trump. In a press briefing, Trump announced that automobiles made outside the country will be charged 25 percent tariffs. Hyundai and Tata Motors shares closed around 2 percent lower. Sona BLW Precision Forgings was down over 3 percent while the shares of Bharat Forge and Samvardhana Motherson were down up to 3 percent on April 3.
Shrimp feed stocks
The shares of shrimp feed companies like Avanti Feeds, Apex Frozen Foods and Coastal Corp tumbled on April 3 after US President Donald Trump announced reciprocal tariffs on several nations including India. Notably, these firms have strong export exposure to US, with significant portion of their revenue being driven by the American market. Avanti Feeds shares crashed 15 percent to close at Rs 754.95 apiece, while those of Apex Frozen Foods plunged nearly 4 percent to close at Rs 207.49 apiece. Coastal Corp shares also recorded a strong downturn, falling over 8 percent to trade at Rs 36.30 apiece.
Chemical stocks
Shares of the domestic chemical companies slumped on Thursday after the United States announced reciprocal tariffs on multiple countries, including India. Navin Fluorine, SRF, Deepak Nitrite and other stocks saw a fall of up to 2 percent.
Metal stocks
The shares of metal companies posted strong losses on April 3 following US President Trump's reciprocal tariffs on concerns over global demand growth and the potential disruption to business activities across the globe. Vedanta was the top loser on the index, crashing nearly 4 percent, while Hindalco and JSW Steel shares fell over a percent each. Tata Steel, Jindal Steel & Power, Hindustan Copper and National Aluminium shares too closed nearly a percent lower, while Steel Authority of India (SAIL) ended with marginal losses.
Pharma stocks
Domestic pharmaceutical players heaved a sigh of relief in trade on April 3, while the other sectors saw intense selling pressure, as the White House has excluded pharmaceuticals products from the reciprocal tariffs announced by U.S. President Donald Trump. The Nifty Pharma index closed at a gain of 2.25 percent by the end of the trading session today. IPCA Labs, Sun Pharma and Lupin emerging jumped up to 5 percent at intraday, and closed in a range of 3-5 percent.
Textile stocks
Despite the imposition of 27 percent tariffs on Indian imports to the U.S., textile stocks outperformed in trade on April 3. The Indian textile and apparel sector is among those with the largest exposures to the U.S. However, these stocks saw sharp gains in trade, as the latest round of tariffs may help Indian exports get more competitive compared to Asian peers. With the latest reciprocal tariffs, the duties on China have increased by 34 percent, 46 percent for Vietnam and by 37 percent for Bangladesh. India, on the other hand, has only a 27 percent tariff, positioning the textile sector competitively. Following the update, stocks such as Grasim Industries, Trident, Welspun Living and Vardhman Textiles closed with gains up to 20 percent in trade.
IDFC First Bank, Poonawalla Fincorp
The shares of IDFC First Bank and Poonawalla Fincorp dodged the overall market trend and recorded sharp gains on April 3 after the two companies announced positive business updates about their performance in the January-March quarter of FY25. IDFC First Bank shares surged nearly 6 percent to trade at Rs 60 apiece. Notably, this is the highest level for the stock in over one month. Poonawalla Fincorp shares surged over 5 percent to trade at Rs 364 apiece. This is the highest level for the stock in 2025 so far.