Indian stock markets take hit from Trump tariffs: Sensex down 800 points, Nifty opens below 23,200

The benchmark Indian indices took a hit from Donald Trump’s tariff announcements, starting the day in red on Thursday (April 3).

The 30-share BSE Sensex started the day 805.58 points lower at 75,811.86. The broader Nifty 50 index opened in the red by 182.05 points at 23,150.30.

The markets had hinted at a worse start in the pre-opening session, where Sensex was down 1500 points and Nifty 50 trailed 200 points lower at one point.

The IT sector, one of the biggest service exporters to the US, took the strongest blow due to the additional duties levied. TCS, Tech Mahindra, HCLTech, and Infosys were among the top laggards in both Sensex and Nifty 50 packs.

Trump tariffs weigh on market sentiment

The downturn comes after US President Donald Trump announced wide-ranging tariffs on imports from partner and adversary nations alike, spurring fears of a recession in US and trade wars worldwide.

The Trump administration has announced 26 per cent reciprocal tariffs on India, saying New Delhi imposes high import duties on American goods, as the Donald Trump administration aims to reduce the country’s trade deficit and boost manufacturing.

The move is likely to affect India’s exports to the US. However, several experts have noted that New Delhi is better-placed than its competitors, who also face increased levies.

What next?

By 11 am, the Indian stock market seemed to have stabilised from the opening lows. Although both Sensex and Nifty were down about 0.3 per cent, it was a far-cry from the complete bloodbath some were bracing for.

However, the outlook ahead still looks grim.

As Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited puts it, “The worse-than-expected reciprocal tariffs announced by President Trump will have a negative impact on markets, globally. The biggest concern is that this will trigger retaliatory tariffs from other countries resulting in a full blown trade war, impacting global trade and global growth. Higher inflation in the US will put the Fed in a tight spot; it would be difficult for the Fed to deliver the rate cuts expected by the market in 2025. The probability of a US recession by the end of 2025 has increased. This is bad news for the global economy and markets.”

Still, it is possible that the picture changes, going forward, when countries like India negotiate bilateral trade agreements with the US.

With inputs from agencies