Indian Markets End Higher Despite Trump’s Tariff Announcement
Indian stock markets closed in the green on Wednesday, brushing off concerns triggered by U.S. President Donald Trump’s announcement of new tariffs on Indian goods. Both the Sensex and the Nifty 50 posted gains, reflecting investor confidence in domestic economic fundamentals despite global trade tensions.
The BSE Sensex rose 385 points to end at 75,145, while the NSE Nifty 50 climbed 110 points, closing at 22,880. The rally was led by banking, auto, and FMCG stocks, which saw renewed buying interest amid expectations that India’s export sectors would remain resilient in the face of potential U.S. trade barriers.
IT and Pharma Stocks Show Resistance
While broader sentiment was positive, IT and pharma stocks showed limited movement, reflecting cautious outlooks on export-dependent sectors that could be directly impacted by the U.S. tariff hike. Trump’s announcement of a 25% duty on Indian goods raised concerns about potential implications for software services and generic drug exports.
Despite this, analysts noted that the market has already priced in some of the risks and is focusing on strong domestic indicators such as GST collection, industrial output, and ongoing infrastructure projects.
Investors Betting on Policy Stability
Market participants believe that the Indian government is likely to take calibrated steps in response to the U.S. move and will work to diversify export destinations. This perception of policy stability helped buoy investor sentiment even as global markets showed mixed trends.
Among key performers, shares of major public sector banks and consumer goods companies posted significant gains. The rupee also remained largely stable against the U.S. dollar, suggesting that currency markets are not yet reacting sharply to the tariff issue.
Experts say that while short-term volatility may arise if the tariff issue escalates, long-term growth prospects for Indian equities remain intact, driven by domestic consumption and capital expenditure.
