Key indices extend losses in morning deals

Indian equity benchmarks extended losses in morning deals, due to heavy selling in Metal, Healthcare and Oil & Gas shares amid global market instability triggered by US tariff announcements. Sentiments remained down-beat as the Global Trade Research Initiative (GTRI) said sectors including agriculture, meat, processed food, plastics, textiles and clothing will face over 30 per cent import duties in the US market from April 9, 2025. It said goods from India are already facing a 25 per cent tariff on steel, aluminium, and auto. For the remaining products, India is subject to a base line tariff of 10 per cent between April 5-8. Then the tariff will rise to country-specific 27 per cent starting April 9. Over 60 countries are affected by the measures. Some concern also came as exchange data showed foreign institutional investors (FIIs) extended their selling streak for the fourth consecutive session on April 3, offloading equities worth Rs 2,806 crore. 

On the global front, Asian markets are trading lower as U.S. President Donald Trump's sweeping 'reciprocal tariffs' announcement triggered widespread selling. It is feared that the new levies could fuel inflation and disrupt global supply chains and lead to trade wars. On the sectoral front, stocks related to auto sector remained in watch as industry body SIAM said the Indian automobile industry does not expect to have any significant impact by US President Donald Trump's reciprocal tariff announcement as autos are not covered in it, besides there are limited exports to the US.

The BSE Sensex is currently trading at 75455.84, down by 839.52 points or 1.10% after trading in a range of 75435.75 and 76258.12. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 3.19%, while Small cap index was down by 3.22%.

The lone gaining sectoral indices on the BSE was Bankex up by 0.05%, while Metal down by 5.18%, Healthcare down by 4.59%, Oil & Gas down by 3.58%, Industrials down by 3.55% and Capital Goods down by 3.48% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 2.09%, Nestle up by 0.79%, Bajaj Finance up by 0.77%, Hindustan Unilever up by 0.51% and ICICI Bank up by 0.27%. On the flip side, Tata Steel down by 6.28%, Sun Pharma down by 5.97%, Tata Motors down by 5.67%, Larsen & Toubro down by 4.20% and Indusind Bank down by 3.97% were the top losers.

Meanwhile, SC Ralhan, the President of the Federation of Indian Export Organisations (FIEO), has said that US tariffs provide Indian exporters with a competitive advantage over rival nations. He said that the movement is ‘quite favourable’. He expressed optimism about the impact of the tariffs on Indian exports, noting that while India faces a tariff of around 27 per cent, this remains manageable compared to the higher tariffs imposed on competing nations, particularly China. 

He stated ‘The import tariffs imposed on peer Asian economies are more compared to the tariff rate of 27 per cent on India could be an advantage to us.’ He said ‘We have an advantage in that whatever the advantage China had with cheap raw materials, that advantage is gone. I think this is good.’ Moreover, he said that Indian manufacturers have an opportunity to increase the trade share.

Further, he stated that industries in countries like Turkey would be more adversely affected, given the disparity in tariff rates. He added ‘Despite initial concerns, India’s position remains strong, and this presents a crucial opportunity for Indian exporters to enhance production quality and maintain consistency in supply. Orders from the US are expected to start flowing to India soon.’ 

Besides, on the domestic front, he emphasised the need for government intervention to support Indian exporters. He urged policymakers to facilitate the modernisation of small- and large-scale industries by reducing tariffs on energy-efficient and high-productivity machinery imports.

The CNX Nifty is currently trading at 22923.15, down by 326.95 points or 1.41% after trading in a range of 22922.55 and 23214.70. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were HDFC Bank up by 1.98%, Tata Consumer Product up by 1.44%, Nestle up by 0.86%, Bajaj Finance up by 0.69% and Hindustan Unilever up by 0.52%. On the flip side, ONGC down by 7.09%, Cipla down by 6.80%, Hindalco down by 6.74%, Dr. Reddy's Lab down by 6.53% and Tata Steel down by 6.25% were the top losers. 

Asian markets are trading lower; Nikkei 225 slipped 1391.62 points or 4.17% to 33,344.31, KOSPI dropped 42.39 points or 1.73% to 2,444.31 and Straits Times fell 114.1 points or 2.98% to 3,828.13.