CHENNAI: Indian equity markets staged a smart recovery on Thursday, bouncing back from sharp intraday losses triggered by US President Donald Trump’s announcement of additional tariffs on Indian goods. Late buying in IT, Pharma, and select index heavyweights helped the benchmarks end in the green.
The BSE Sensex rebounded 812 points from the day’s low of 79,811.29 to end at 80,623.26, up 79.27 points or 0.10 per cent. The NSE Nifty50 also recovered from a sharp fall, closing 21.95 points higher at 24,596.15 after touching an intraday low of 24,344.15.
Markets opened sharply lower after Trump announced a fresh 25 per cent tariff on Indian goods, effectively doubling the total tariff burden to 50 per cent. The earlier 25 per cent tariff, announced last week, took effect today. The additional round is scheduled to come into force on August 27 after a mandatory 21-day notice period.
The knee-jerk reaction saw Sensex and Nifty shedding over 700 and 250 points respectively during early trade. Export-dependent stocks from sectors like textiles, jewellery, seafood, and chemicals bore the brunt, with several names falling up to 6 per cent. However, recovery in global cues, short-covering ahead of derivative expiries, and positive commentary from select brokerages eased investor nerves and supported the rebound.
On the Sensex, Tech Mahindra, Eternal (Zomato), and HCL Technologies were the top gainers, while Adani Ports, Trent, and Hindustan Unilever were among the biggest losers. On the Nifty, Hero MotoCorp, Tech Mahindra, and JSW Steel topped the gainers’ list, whereas Adani Enterprises, Adani Ports, and Grasim Industries lagged.
Broader markets also ended in the green. The Nifty Midcap 100 index rose 0.33 per cent, while the SmallCap index added 0.17 per cent.
Among sectoral indices, Nifty Pharma gained 0.75 per cent, IT rose 0.87 per cent, Media was up 0.99 per cent, Auto advanced 0.25 per cent, PSU Bank added 0.29 per cent, and Metal edged 0.13 per cent higher. On the other hand, Nifty Realty and Oil & Gas slipped 0.13 per cent and 0.19 per cent, respectively.
Despite the recovery, market participants remain cautious amid rising trade tensions and uncertainty over U.S.-India negotiations. Analysts say volatility could persist in the coming weeks, especially as the August 27 tariff deadline approaches.