The shares of pharma and IT companies tumbled on March 4 as US President Donald Trump's tariffs on Canada and Mexico came into effect, which made investors move away from export-sensitive stocks. Both Nifty IT and Nifty Pharma constituents were standing in the red even as broader markets were trading higher and benchmark indices were in mild red.
The shares of LTI Mindtree were the top loser among the stocks on Nifty IT, falling nearly 4 percent to trade at Rs 4,647 apiece. The stock has so far fallen nearly 21 percent in the past one month. Meanwhile, Coforge, Persistent and HCL Tech shares recorded nearly 2 percent fall in their respective share prices. Mphasis shares were trading nearly 1 percent lower at Rs 2,237 apiece.
The shares of Infosys, Wipro, L&T Technology Services and Tech Mahindra were trading with marginal losses in the red.
However, TCS shares bucked the trend to trade in the green with marginal gains.
Among the stocks on the Nifty pharma index, Sun Pharma was the top loser. The stock dropped nearly 2 percent to trade at Rs 1,560 apiece. It has so far declined nearly 12 percent over the past one month.
Despite the fall in its share price, Sun Pharma remains one of the top large cap ideas set by Motilal Oswal Research.
Gland Pharma and Mankind Pharma shares dropped over 1 percent each, while Torrent Pharma, Cipla, Lupin, Aurobindo Pharma and Dr Reddy's Laboratories shares were trading in the red with marginal losses.
Several pharma stocks however were trading in the green, with some recording significant gains. Biocon shares was trading nearly 3 percent higher, while Laurus Labs, Abbott India, J B Chemicals and Pharmaceuticals, and Natco Pharma were each trading over 1 percent higher.
Ajant Pharma, Glenmark, Alkem Labs and Zydus Life were trading in the green with minor gains.
As US President Donald Trump's tariffs on Canada, China and Mexico take effect from today, investors remain concerned over his threat of reciprocal tariffs on India.
Notably, Canada has also announced a big package of counter-tariffs against US-made products after President Donald Trump confirmed that his administration will go ahead with levies against Canada and Mexico. "Canada will not let this unjustified decision go unanswered," Prime Minister Justin Trudeau said in a statement late Monday.
China's Commerce Ministry meanwhile vowed to retaliate against fresh US import tariffs, reiterating its stance that the Trump administration was trying to "shift the blame" and "bully" Beijing over fentanyl flows. The US has argued that China supplies chemicals used in fentanyl production. China has denied any wrongdoing.
Mexico's President Claudia Sheinbaum meanwhile said, "We have a plan B, C, D."
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