Trump's rates on India - real threat or hype? Top Brokers Decode the impact on sectors and economy | Einsmark news

The first day of trade after the announcement of retaliation rates by Donald Trump has come to an end for Asian markets, and India has emerged as a bright place in the midst of a deeper massacre seen at other local counterparts. Although Japan’s Nikkei fell 2.8%, South Korea’s Kospi lost 1.1% and Hong Kong’s Heng Seng Barn by 1.7%, the other Dalal Street came to the fore with a mere 0.40% drop in the head index, which indicated the country was imposed on India. Is Trump’s tariff impact on India limited? According to analysts, the number of 26% is large, but this is a relief due to no increasing impact on major export sectors such as IT services, pharmaceuticals and cars. The quantity of the tariff on India also looks smaller compared to what the US imposed on other exporting countries such as China (54%), Cambodia (49%) and Vietnam (46%). “Recipient tariff announcements occur as a relief, as no incremental adverse impact on major export sectors such as IT services, Pharma and Autos. The 27% rate on India also looks reasonable from a relative perspective,” according to Jefferian analysts. For the time being, the Trump administration has released any additional rates on India’s pharmaceutical industry, driving a rally in the businesses belonging to the sector. “At first glance, the 26% tariffs imposed on India seem to be quite high, higher than India on most US items. Two of India’s heights export-IT services and pharmaceuticals are unaffected by this announcement. India looks protected from a competitive point of view, as rates on various South Asian economies,” From Bernstinin. If India can earn at all from China’s loss, which, according to some measures, is now staring at a 54% rate, he added. Bernstein further believes that India will be able to navigate through the tariff challenges safely and are more likely to work with us through negotiations rather than heating the trade war. Although it sees an immediate negative sentiment in the markets, it still retains the second half macro recovery thesis and considers a potential trading agreement with us as a positive long -term development. India’s Surplus for Goods Trade with the US was $ 46 billion in 2024, which accounts for 1.2% of GDP, with the US, which is India’s best destination for goods, with an 18% share. Which sectors will carry most of Trump tariffs? Most analysts consider IT services as the biggest accident of Trump’s tariff war. This impact does not come directly from rates imposed on India, but rather because of a slowdown in the form of US discretionary spending as a result of these measures. Greater concerns are on weaker US economic outlook, which are negative for IT services and other exporters, Jefferies said. It is seen that the demand for manufacturing/logistics and retail vertical is affected by higher rates, while the demand for vertical such as healthcare, HiTech, aid programs and communication will be less affected, it states. HCL Tech and Tech Mahindra of the Great Capitization Space and IKS and Sagility of the Mid-Capitization Space are the best choice. Bernstein has downgraded the IT to equal weight as it sees the recession risk increasing in the wake of these measures. “The great loss will eventually come in the form of US discretionary spending, which could have medium -term effects for the economy if the tariff war warms up. It could eventually lead to some impact on IT firms,” ​​it said while commenting on the impact of tariff measures. In addition, it has upgraded healthcare to equal weight amid a limited impact on the sector. According to Nomura, Indian IT services will also be one of the most vulnerable in the latest term on the latest tariff measures amid concerns about the slowdown of the US. The impact was visible as the index fell by 4% today, which became the worst sector. In the comments on the impact on other sectors, Bernstein said: “However, rates affect other sectors from auto parts to clothing, but even there are the other competitors of India such as Thailand, Vietnam or Bangladesh (for clothing) that are even higher. Moving the needle a lot, and we believe that the tendency to electronic meeting with adequate interior demand. Chemicals and textiles, while recommending to buy pharmaceutical stocks on dips. While the rates exceed our estimates for India, they are on a relative basis on par/lower than other important competitive economies, “Morgan Stanley said. There is a downside risk of 30-60 BPS to 6.5% growth area. However, pharmaceutical products, an important Indian export to the US, are largely released from the reciprocal rate, the impact could have been greater, it added. A positive side sees this trading risks that provide the catalyst for India’s much -needed reforms, including rates, which make the trade agreements faster, open to the FDI, and make the rupee more market. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. Business NewsMarketsstock Marketstrump’s rates on India – real threat or hype? Top Brokers Decode the impact on sectors and economy more less