Investors cheer Trump's tariff pause: These are the top gaining spaces

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26 Aug, 2025 12:21

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Benchmark Indian indices surged on April 11, with Sensex rising over 1,300 points and Nifty 50 up nearly 2 percent following a relief rally on US President Trump's 90-day pause on tariffs, which is expected to provide relief to investors with exposure to external-oriented spaces.

Here are the top gaining sectors on Dalal Street following the tariff pause:

While Trump has not unveiled any specific plan related to the tariffs on pharma sector, the overall pause and ongoing talks about a US-India bilateral trade agreement (BTA) will likely benefit the sector. The Nifty Pharma index was up over 2 percent to 20,462. Laurus Labs shares were the top gainer on the index, rising over 7 percent. Other notable stocks include Granules (up over 4 percent), Cipla (up over 3 percent), Biocon (up over 3 percent), Dr Reddy’s Laboratories (up over 1 percent) and Sun Pharma (up over 2 percent).

Most of the IT players derive major portions of their revenue from the US. Trump's tariffs triggered fears of US recession, which acted as a major negative for the stocks. However, after the pause on the tariffs, Goldman Sachs dropped their US recession forecast. This acted as a major positive for the sector, with IT stocks rallying in the morning. However, the stocks sharply fell during the day as dollar weakened amid escalating US-China trade war.

Despite the sharp correction in few stocks, the Nifty index closed in the green. Persistent and LTI MindTree shares were the top gainers on the index, closing nearly 3 percent higher. Mphasis and Wipro shares followed, trading over 2 percent higher each. Infosys, Tech Mahindra and HCL Tech shares erased significant gains to close in the green marginal higher.

The Nifty Metal index was the top gaining index on the stock market, rising over 4 percent to close at 8,168. Tata Steel, which saw a strong slump after Trump’s reciprocal tariff plan, surged nearly 5 percent to close at Rs 133 apiece. Other notable stocks include Hindalco (up nearly 7 percent), JSW Steel (up nearly 5 percent), Adani Enterprises  (up over 4 percent), SAIL (up over 3 percent) and Vedanta (up nearly 3 percent).

The shares of auto component makers have surged as these companies have large exposure to the US market. Sona BLW shares were up 6 percent, while those of Samvardhana Motherson were trading nearly 5 percent higher.

The shares of shrimp exporting companies also surged as these have strong export exposure to US, with significant portion of their revenue being driven by the American market. Notable stocks include Avanti Feeds (up over 5 percent), Apex Frozen Foods (up nearly 4 percent) and Coastal Corp (up nearly 9 percent).

Stocks of electronics manufacturing services (EMS) firms in India saw a sharp uptick as global brands like Apple may continue to source parts from India following the tariff pause. Notably, the shares were already on the rise since reports emerged stating that Apple is planning to source more iPhones from India to the US to beat the tariffs imposed on China. Kaynes Tech shares were up over 5 percent, while PG Electroplast shares jumped over 8 percent. Dixon Tech shares also surged over 7 percent.

Indian textile players are expected may benefit from the 145 percent tariff imposed on China, which is the biggest supplier of textiles and apparel to the US. Prominent stocks include Grasim Industries (up 4 percent), Trident (up nearly 3 percent), Welspun Living (up over 9 percent) and Vardhman Textiles (up nearly 6 percent).

India's solar engineering, procurement and construction (EPC) firms have significant exposure to the US market, and the tariff pause is set to benefit these companies. Premier Energies shares gained over 4 percent, while Waaree Energies shares were trading with marginal gains.