Global stock markets have taken a hit, and it all started with the new tariff announcement by the United States. A steep 26% import duty on goods from countries like India has sparked fear of a trade slowdown, leading to panic among investors worldwide.
India felt the impact right away. The Nifty 50 today crashed by 743 points and the BSE Sensex tumbled over 2,200 points, one of the biggest single-day drops in 2025.
In this blog, let’s delve into what these new tariffs mean, why markets are reacting the way they are, and how India’s top companies and sectors are being affected.
Nifty & Sensex Crash: What Just Happened?
Nifty 50 represents the top 50 companies in India that are listed on the National Stock Exchange by their market capitalization. While BSE Sensex represents the top 30 companies listed on the Bombay Stock Exchange.
These indices include companies from different sectors, often used as a benchmark for the broader market. So, it tells us how the broader market is doing. Post the U.S. Tariffs announcement, the Nifty 50 fell by 3.24% and the Sensex dropped by 2.95% on 7th April, 2025.
Top stocks like Bajaj Auto (-4.72%), TATA Steel (-7.26%), Trent (-14.7%) tanked significantly on 7th April, 2025. This fall was part of a global sell-off due to investors pulling out their money to invest in safer assets.
What Do The New Tariffs Mean?
In simple terms, tariffs are taxes imposed on goods imported from other countries. On April 3rd, 2025, U.S. President Donald Trump announced a 26% tariff on imports from India. The goal of tariffs is to encourage people to buy domestic products, but they come with consequences.
In a world where economies are closely tied through the trade of goods, such tariffs disrupt the flow of commerce. For export-heavy companies like those in Pharma, Textiles, Auto, etc, this means higher costs and lower earnings. As a result, investors fear that these companies’ revenues will take a hit.
These tariffs don’t just affect India, they raise concerns of a broader trade war, where countries respond with reciprocal tariffs. This can slow down global trade and economic growth.
Which Indian Sector & Stocks Are Most Affected?
Companies whose revenue heavily depends on exports from India stand to be impacted the most.
Here are industries and Indian Stocks that have material revenue and that may be affected by the new imposed tariffs:
| Industry | Name of the stock | % of revenue from the US |
| Auto | Tata Motors | 15% |
| Sona BLW Precision Forgings | 40-45% | |
| Chemicals | Navin Fluorine | 25% |
| PI Ind | 20% | |
| SRF | 7% | |
| UPL | 11-13% | |
| Solar | Waaree Energies | 54% of order book (primarily US) |
| Industrials | Cummins India | 5-15% |
| Thermax | 5-10% | |
| KEI, Polycab | <5% | |
| HEG | 17% | |
| Electronics Manufacturing | Kaynes | 3% |
| Syrma | 4% | |
| Dixon | 7% | |
| Textiles | Welspun Living | 40-60% |
| Trident | ||
| Himatsingka | ||
| Indocount |
Let’s look at how these Indian sectors are being impacted
Auto Sector
Tata Motors and Sona BLW Precision Forgings are the most exposed.
- Tata Motors’ Jaguar Land Rover segment, which offers luxury vehicles, has a 33% wholesale-volume mix while its revenue from the US accounts for 15% of its total revenue.
- Sonal BLW specializes in designing and manufacturing highly engineered and high-quality components for electric vehicles. It earns roughly 40-45% of its revenue from the US.
A 26% tariff reduces their pricing competitiveness in the U.S., which will eventually force buyers to shift to local, cheaper alternatives.
Chemical Industry
- Navin Fluorine supplies fluorochemicals used in Pharmaceuticals, agrochemicals, and refrigeration. 25% of its revenue comes from the U.S
- Similarly, PI Industries and SRF are leading agrochemical players.
- UPL is the 5th largest agricultural company and has over 43 manufacturing plants globally.
These companies may face delayed orders due to customers opting for non-Indian suppliers.
Solar Industry
Waaree Energies is India’s largest exporter of Solar modules with over 50% of its order book tied to U.S. buyers. The rise in tariffs may significantly impact U.S. investments in clean energy and the revenue of Waree Energies.
Industrials Sector
- Cummins India, KEI and Polycab export power cables, engines and industrial machinery.
- Thermax exports boilers, heaters, solar equipment, etc.
The U.S. forms 5 to 15% of revenue for these companies. The revised tariffs would make Indian machinery and equipment more expensive, which might lead to lower revenue for these companies.
Electronics Sector
Kaynes, Syrma and Dixon provide electronic manufacturing services. They export electronic components to global brands.
Most EMS have long-term contracts. Increased tariffs may mean that U.S. clients push for renegotiation due to increased prices or incline towards reducing order volumes.
Textile & Apparel Sector
Welspun Living, Trident, Himatsingka, and Indo Count sell bed linen, bath linen, rugs, curtains, etc. It is heavily dependent on its export to the US, with over 40 to 60% of its revenue directly coming from the U.S.
Increased tariffs mean these goods become significantly more expensive than what is being sold in the U.S.
What Should You Watch As An Investor?
The recent U.S. tariff move has created short-term panic, but the long-term impact depends on how companies and governments respond. As an Indian investor navigating the effects of U.S. tariffs, here are key signals and factors to keep an eye on:
Export-dependent Sectors: Watch how companies with high U.S. exposure adjust their guidance. Also, look out for contract negotiations or reduced order flow.
Rupee Dollar Exchange Rate: Trade tensions usually make the dollar stronger and emerging market currencies like the rupee weaker. A weaker rupee can benefit exporters in the short term, but also raises input costs for many companies.
FII Activity: A rise in tariffs can trigger risk-off sentiment globally, prompting capital outflows from emerging markets like India. Keep tabs on FII inflows/outflows, they often signal shifts in market sentiment.
Disclaimer
This blog is for general/educational information purposes and is no way to be considered as advice, or recommendation for investment or otherwise. Investment in securities market are subject to market risk, read all the documents carefully before investing. The securities quoted are exemplary and not to be considered as any kind of advice or recommendation. The past performance of the stocks are not necessarily indicative of future performance. INDmoney Private Limited 616, Level 6, Suncity Success Tower, Sector 65, Gurugram, 122005, SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500.
Source: Company filings, Jefferies, NSE