US Tariff Shakes Indian Markets, Textile and Pharma Sectors Sink

In a swift market reaction, Indian stocks, particularly in textile, pharma, auto, and IT sectors, plummeted following US President Donald Trump's tariff announcement. The US plans to levy a 25% tariff on Indian goods starting August 1, accompanied by an unspecified penalty for India's procurement of Russian oil and military equipment.

Major players in textiles like Pearl Global Industries and Gokaldas Exports faced significant losses as their stocks fell steeply. Pharma stocks also took a hit, with Jubilant Pharmova and Ipca Lab among the hardest hit. Auto giants such as Force Motors and Bajaj Auto ended the day on a low note, reflecting broader market trepidation.

The tariffs are seen as a strategic move to pressure India into favorable trade agreements after the US secured deals with Japan, the UK, and EU. Sector experts remain cautiously optimistic, suggesting that while immediate impacts are evident, India's robust economic fundamentals will mitigate long-term effects, setting the stage for future negotiations.

(With inputs from agencies.)