At 12:30 IST, the barometer index, the S&P BSE Sensex, declined 306.04 points or 0.40% to 76,305.49. The Nifty 50 index fell 72.65 points or 0.31% to 23,259.70.

In the broader market, the S&P BSE Mid-Cap index shed 0.13% and the S&P BSE Small-Cap index added 0.39%.

The market breadth was strong. On the BSE, 2,560 shares rose and 1,191 shares fell. A total of 182 shares were unchanged.

Trump's Tariff Shock:

US President Donald Trump has announced a sweeping set of reciprocal tariffs, aiming to counter what he calls unfair trade practices. A 10% baseline tariff will be imposed on all imports starting April 5, impacting the United Kingdom, Singapore, Brazil, Australia, New Zealand, Turkey, Colombia, Argentina, El Salvador, the United Arab Emirates, and Saudi Arabia. However, around 60 countries deemed 'worst offenders'—those' that impose higher tariffs on US goods or create trade barriers—will face significantly steeper tariffs beginning April 9. These include China (54%), the European Union (20%), Vietnam (46%), Thailand (36%), Japan (24%), Cambodia (49%), South Africa (30%), and Taiwan (32%). While Canada and Mexico are exempt from these new tariffs, they remain subject to previous trade measures tied to border security and fentanyl-related concerns.

Additionally, Trump has also announced a 25% tariff on all foreign-made automobiles, set to take effect at midnight on April 3.

Importantly, no new reciprocal tariffs were announced for the pharmaceutical sector. According to a White House fact sheet, drugs and certain other products, some of which are already subject to existing tariffs, will not be affected by the latest levies. However, Trump has hinted that future tariffs on pharmaceuticals, semiconductors, and other sectors may be unveiled at a later date.

India will face a 25% tariff on steel, aluminium, and auto-related goods, and no tariffs on pharmaceuticals, semiconductors, copper, or energy products. For the remaining products, India will be taxed a reciprocal tariff of 27%.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.65% to 13.50. The Nifty 24 April 2025 futures were trading at 23,375.15 at a premium of 115.45 points as compared with the spot at 23,259.70.

The Nifty option chain for the 24 April 2025 expiry showed a maximum call OI of 43.7 lakh contracts at the 23,500 strike price. Maximum put OI of 46.4 lakh contracts was seen at 23,500 strike price.

Buzzing Index:

The Nifty Auto index declined 0.65% to 21,269.50. The index rallied 0.82% in the past trading session.

Balkrishna Industries (down 2.55%), Samvardhana Motherson International (down 2.28%), Bharat Forge (down 2.25%), Bajaj Auto (down 2.23%), Tata Motors (down 1.61%), Tube Investments of India (down 0.98%), Hero MotoCorp (down 0.84%), TVS Motor Company (down 0.82%), Bosch (down 0.69%) and MRF (down 0.65%) declined.

On the other hand, Maruti Suzuki India (up 0.62%), Eicher Motors (up 0.57%) and Exide Industries (up 0.13%) edged higher.

Stocks in Spotlight:

AU Small Finance Bank (SFB) rallied 3.45% after the bank's total deposits climbed 10.7% to Rs 1,24,270 crore as of 31st March 2025 as compared with Rs 1,12,260 crore as of 31st December 2024.

Bharat Electronics (BEL) added 1.70% after the company signed a contract with the Indian Air Force (IAF) valued at Rs 593.22 crore.

Kirloskar Oil Engines gained 3.13% after the company announced that it has received a prestigious order worth Rs 270 crore from the Ministry of Defence, Government of India, represented by the Indian Navy.