Trump’s Tariff War Triggers Nifty 50’s Record Losing Streak 

THE BIG TALKING POINT OF TRUMP’S TARIFF WARS 
- Canada, Mexico - 25% 
- China - Additional 10% 

CANADA’S REPONSE 

• Threatened to cut off electricity flowing from Ontario 
• Will impose $107 billion in retaliatory tariffs on US goods 

CHINA’S RESPONSE 

• Will impose tariffs on agricultural imports from the US 
• Additional 15% tariffs will be imposed on chicken, wheat, corn, cotton
• Further 10% tariffs on sorghum, soya beans, pork, beef, aquatic products, fruits, vegetables and dairy products.

 

 

D-Street Highlights 

• Pharma, IT stocks tumble as Trump’s Mexico, Canada, China tariffs take effect
• Oil sensitives surge as Brent crude slumps to $70/bbl 
• Zomato, Swiggy shares on fire after ICICI Securities reiterates “Buy” call
• Jio Financial Services soars 3% on plans to acquire SBI’s stake in Jio Payments Bank 
• FDI flows could be impacted due to rising risk aversion, says CEA

The Indian equity market experienced another day of losses as the implementation of US tariffs on key trading partners—China, Canada, and Mexico—dampened investor sentiment globally. The Nifty index extended its longest losing streak, declining for the tenth consecutive session.

Broader market performance was mixed. The BSE Midcap index remained largely flat, while the BSE Smallcap index gained 0.7%.
The US officially imposed a 25% tariff on imports from Canada and Mexico, while Chinese imports now face a total 20% duty. In a further escalation, reciprocal tariffs from other trading partners will take effect on April 2.

Sectoral Performance
Five of the 13 Nifty sectoral indices closed in negative territory, with IT, auto, pharma, and FMCG stocks leading the decline.
Shares of IT and pharma companies, which derive a significant portion of their revenue from the US, declined nearly 1%. However, oil marketing companies witnessed strong buying interest following a sharp decline in crude oil prices, with their stocks surging 3-4%.

SECTORAL PERFORMANCE

The yield on 10-year government bonds ended flat as the impact of falling US Treasury yields was offset by heavy market borrowing by state governments. Market participation remained low, as investors anticipated a further tightening of banking system liquidity in March due to tax payments. Uncertainty over the Reserve Bank of India’s open market bond purchases further dampened demand.

Today, 14 states collectively raised ₹505 billion through bond issuances, surpassing earlier estimates by over ₹100 billion. In March, states are expected to raise an additional ₹1.35 trillion through three more auctions.

The Indian rupee closed 10 paise higher against the US dollar, as the US Dollar Index weakened further, and benign crude oil prices lent support. However, gains were limited due to rising global trade tensions and persistent selling by foreign institutional investors in domestic equities.

OUTLOOK
Indian equities are expected to remain subdued amid heightened risk aversion. Investors will closely monitor US President Trump's address to the joint session of Congress for further cues on trade and economic policy.
Trump will deliver the State of the Union address tonight, his first to Congress since returning to office six weeks ago. Like his predecessors, he is expected to outline his agenda on immigration, foreign policy, and economic priorities.
The dollar/rupee exchange rate is expected to be impacted by tariff-related developments. While regional currency appreciation may provide some support, ongoing uncertainty around US trade policies could trigger volatility. The pair is expected to trade within the 87.00-87.50 range.

Key Events and Data to Watch on Wednesday

• HSBC India Services and Composite PMI for February (S&P Global)
• US EIA weekly petroleum status report
• US ADP National Employment Report

Corporate Actions on Wednesday

• Bharat Electronics Ltd. board to consider declaring a dividend 
• LIC Housing Finance board to discuss fundraising plans
• JHS Svendgaard Retail Ventures board to review fundraising proposals

Other Key Events

• Bank of England Governor Andrew Bailey to appear before the Treasury Committee