Nifty, Sensex Trade Lower As Trump's Tariffs Come Into Effect — These Sectors Are Worst Hit

The Indian stock market opened on a weaker note on April 9, as the Nifty 50 and BSE Sensex both traded lower, following the implementation of US tariffs.

The Nifty 50 opened 0.79% lower at 22,357 and continued to decline, trading 0.32% lower at 22,464.25 by 9:30 a.m. The BSE Sensex also opened 0.75% lower at 73,673.06 and was down 0.25% at 74,043 shortly after the tariffs took effect.

"President Trump's announcements on reciprocal tariffs do little to reduce uncertainty, but we believe the impact on Indian markets is likely to be limited," said HSBC in a note.

Services and pharma products are exempt (at least so far) from the tariffs and this limits the impact on earnings. Any progress on the ongoing bilateral trade discussions would be a positive.

"The US accounts for 43% of foreign portfolio holdings, but risks of further outflows appear limited; foreign holdings in India are the lowest in 12 years," the brokerage noted.

All sectors tracked by NSE were trading in the red, except for the FMCG sector, which was up 0.71%.

The Nifty IT index was the biggest laggard, dropping 2.79%, followed by Nifty Metal and Nifty Realty, which declined 2.07% and 1.73%, respectively.

India's domestic growth cycle could be on the mend, Morgan Stanley said in an April 8 note. A global recession or a near-recession situation would challenge "our call and keep Indian equities closer to our bear case for 2025".

"India's potential trade deal with the US may take time, but we think it is more likely than not and could help India gain share in US trade," it stated