India Faces Trade Challenge as 50% US Tariff Kicks In
The US has implemented a 50% tariff on Indian goods, impacting sectors like textiles, gems, and shrimp. Despite expected market jitters, analysts predict minimal panic, with FIIs selling and DIIs stepping in at lower levels. Pharma and electronics remain unaffected, while export-focused sectors face headwinds.
- Country:
- India
Stock market investors may remain jittery after a steep 50% tariff on Indian goods entering the United States came into effect on Wednesday. Key sectors such as textiles, gems, and jewellery, and leather are expected to be in focus as trading begins, analysts indicate.
However, market experts predict no panic, noting that the 50% tariff wasn't unexpected. Stocks might remain range-bound, despite the additional 25% tariff imposed by the US on India's Russian oil purchases, cumulatively raising levies to 50%.
Sectors hit by these duties include textiles/clothing, gems, and machinery, while defensives like pharma and electronics remain insulated. DIIs are expected to buy aggressively despite selling by FIIs, ensuring some market stability.
(With inputs from agencies.)
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- gems and jewellery
- leather
- FIIs
- DIIs
- pharma
- electronics
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