Indian shares ended the week lower on Friday, following U.S. President Donald Trump’s sweeping retaliatory tariffs that intensified a global trade war and stoked recessionary fears.
Information technology and commodity stocks led declines due to their high exposure to the U.S. economy and global growth.
The Nifty 50 fell 2.61% to 22,904.45 for the week and the BSE Sensex dropped 2.65% to 75,364.69. The indexes declined 1.5% and 1.2%, respectively, on the day.
While Trump’s tariffs were much higher than anticipated, Indian markets were little scathed on Thursday, buoyed by optimism around a relatively lower levy rate on the country, at 26%, compared to other major emerging economies giving it a competitive edge.
“That is more (of a) narrative than reality,” said Aishvarya Dadheech, chief investment officer of Fident Asset Management.
India being relatively less impacted than other Asian countries is a “thin silver lining to a dark cloud”, said Emkay Global Financial Services.
Dadheech said India cannot be insulated from negative sentiment and be an exception to a global sell-off.
Indian shares endure US tariff jolt; relatively lower duties limit losses
The IT index slid 9.2%, posting its biggest weekly drop in five years, on worries that a potential recession in the U.S. economy could derail the recovery in technology spending.
Metals and energy stocks plunged 7.5% and 3.8%, respectively, as concerns over global growth hit base metals and crude oil prices.
Drugmakers had a tumultuous week. The stocks jumped on Thursday as the sector was exempted from tariffs, but the optimism was short-lived with Trump threatening to levy tariffs at “levels never seen before.”
The pharma index dropped 4% on Friday, losing 2.7% during the week.
The broader mid-cap and small-cap indexes slipped 2% and 2.6% for the week.
Bucking the trend, financials rose on the day, with HDFC Bank and Bajaj Finance jumping 1.3% and 1.5%, respectively. They were among top three Nifty gainers.
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