India’s heavyweight banking and information technology stocks pushed equity benchmarks higher on Wednesday, hours before the United States announces new reciprocal tariffs that could intensify global trade tensions and hit economic growth.
Details of U.S. President Donald Trump’s “Liberation Day” tariff plans were closely held ahead of a White House Rose Garden announcement scheduled for 1:30 a.m. IST on Thursday (2000 GMT on Wednesday).
Investors fear Trump’s reciprocal tariffs could push up U.S. inflation and slow global growth, reducing flows into emerging markets like India.
India is open to cutting tariffs on more than half of U.S. imports worth $23 billion in the first phase of a trade deal the two nations are negotiating, Reuters reported on March 25, citing two government sources.
“Very little is known about how these tariffs may be implemented, including which countries or sectors may be targeted or exempted, how the tariffs will be computed, and whether they will be broad-based or sector-specific,” JP Morgan said.
India’s agricultural products, pharmaceuticals and chemicals, and electronics sectors could be materially affected, it said.
Indian equity benchmarks dip on US tariff worries
The country’s NSE Nifty 50 index rose 0.72% to end at 23,332.35, while the BSE Sensex added 0.78% to 76,617.44.
The benchmarks recorded their biggest daily percentage drop in a month on Tuesday.
On the day, all the 13 major sectors rose while the broader smallcaps and midcaps advanced 1.1% and 1.6%, respectively.
Financial stocks gained 0.9%, with private lenders ICICI Bank and HDFC Bank rising 0.9% and 1.6%, respectively, after the local central bank said it will infuse liquidity into the banking system.
IT stocks rose 0.8%, with Tech Mahindra rising 2% after JP Morgan upgraded the stock.
Tata Consumer Products jumped 7.1% after Goldman Sachs upgraded it to “buy” from “neutral” on strong earnings growth expectations.
Electronics components maker Dixon Technologies rose 4% on expected benefits from a government incentive scheme.
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