The shares of auto, metal and real estate companies dropped in trade on August 26, after Donald Trump-led US administration issued a draft order over the implementation of additional 25 percent tariff on Indian imports, effectively from August 27 (Wednesday).
The sharp drop in the share prices pushed the sectoral indices, as well as the overall market, down. Nifty Metal and Nifty Realty indices fell more than 1.2 percent and nearly 1.6 percent to hover around 9,319 and 902 respectively. Nifty Auto meanwhile was down over 0.6 percent in the morning.
According to a draft notice released by US Department of Homeland Security, the additional tariffs will cover Indian products "that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 27, 2025".
The notice cited "threats to the United States by the Government of the Russian Federation" as the reason for President Donald Trump's executive order dated August 6. The ties between New Delhi and Washington soured after Trump announced that he will hike the tariffs on Indian goods to 50 percent, allegedly in response to New Delhi's continued purchases of Russian oil and defence equipment.
Top losers on metal index:
Several metal companies have strong export exposure to the US, and will likely be impacted by Trump's tariffs. On the metal index, Adani Enterprises shares were the top loser, dropping more than 2 percent to trade at Rs 2,253 apiece. Welspun Corp, Steel Authority of India (SAIL) and Tata Steel shares fell nearly 2 percent each.
Hindalco Industries, National Aluminium Company (NALCO), Hindustan Copper, NMDC and JSW Steel shares fell more than 1 percent each, while Vedanta and Hindustan Zinc shares were down nearly 1 percent. Jindal Stainless Steel shares were trading in the red with marginal losses.
Top losers on realty index:
While real estate companies are mostly domestic market-oriented, Trump tariffs can inflate the cost of raw materials associated with the industry, which in turn may put pressure on the margins of these companies.
On the realty index, heavyweight DLF was the top loser, dropping more than 2 percent to trade at Rs 755 apiece. Macrotech Developers (Lodha), Godrej Properties, Sobha and Oberoi Realty shares fell nearly 2 percent each.
Prestige Estates, Raymond, Anant Raj, Phoenix and Brigade Enterprises shares fell around 1 percent each.
Top losers on auto index:
Several automakers and auto-parts makers derive major portion of their revenue from exports to US. While some auto and auto parts exports are exempt from the latest tariff change, the overall impact on the industry and uncertain trade rules may have pushed the stocks down.
Samvardhana Motherson and Bharat Forge shares dropped more than 2 percent, leading losses on the auto index. Balkrishna Industries, MRF and Tube Investments of India shares fell around 1.5 percent each. TVS Motor, Ashok Leyland, Bosch and Maruti Suzuki shares were down up to 1 percent.
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