RECIPROCAL TARIFFS CREATE MORE LOSERS, SOME WINNERS

Global markets reeled from the sweeping tariffs imposed by US President Donald Trump, but India's benchmark indices emerged relatively unscathed on Thursday, dipping by a modest 0.4 per cent. However, a closer examination of stock and sectoral performance reveals a more nuanced impact, with the tariffs creating a mix of winners and losers.

- SUNDAR SETHURAMAN

Indian equity benchmarks ended Thursday with modest losses, even as their global peers tumbled after US President Donald Trump announced across-the-board tariffs against US trade partners, sparing neither friend nor foe.

India's equity market fared better amid hopes that the country may benefit from relatively lower trade tariffs. The Sensex ended the session at 76,295, down 322 points, or 0.4 per cent, while the Nifty closed at 23,250, shedding 82 points, or 0.4 per cent. The Sensex hit a low of 75,808 and a high of 76,494.

On Wednesday, the US President imposed a 26 per cent reciprocal tariff on India, though an annexure to the order put it at 27 per cent. However, the tariffs on India were less severe than those on most Asian peers. The unexpected exemption for the pharmaceutical sector is also seen as beneficial to India, which is a major exporter.

Trump announced a 10 per cent baseline tariff on all imports, along with country-specific taxes. The tariff estimates were modified to account for what the US considers currency manipulation and other taxes imposed by countries on US imports.