On March 28, 2025, Indian equity markets commenced trading on a flat note, reflecting global apprehensions surrounding upcoming U.S. tariffs on automotive imports. The BSE Sensex opened near 77,550, while the Nifty50 hovered around 23,580.
As the session progressed, both indices experienced slight declines. By 10:06 a.m. IST, the Nifty50 was down 0.17% at 23,553.8, and the Sensex had decreased by 0.20% to 77,451.
Investor sentiment has been notably cautious due to the anticipated implementation of a 25% tariff on automotive imports by the U.S., set to take effect next week. This development has particularly impacted sectors such as Information Technology (IT) and Automobiles, both of which have significant exposure to international markets. The Nifty IT index declined by 1.3%, with major companies like Tata Consultancy Services (TCS) and Infosys experiencing drops of 1.1% and 1.7%, respectively. Similarly, the Nifty Auto index fell by 0.8%, marking a two-day decline of 2%.
Pharmaceutical stocks also faced pressure, with the Nifty Pharma index down by 0.9%. The U.S. market accounts for approximately one-third of India's pharmaceutical exports, making the sector sensitive to international trade policies.
In contrast, BSE Limited, the stock exchange operator, saw its shares surge by 12%. This uptick followed regulatory adjustments to the derivatives expiry schedule, a move analysts believe will help address concerns over the exchange's market share.
Broader market indices showed modest gains, with the Nifty SmallCap and Nifty MidCap indices rising by 0.6% and 0.4%, respectively. This indicates selective buying in mid and small-cap stocks despite the overarching cautious sentiment.
Globally, Asian markets mirrored this cautious trend, with Japan's Nikkei closing at a two-week low, down 1.8% at 37,120.33, primarily due to declines in auto stocks amid U.S. tariff concerns.
