FX.co ★ Sensex Recovers Despite US Tariff Pressure

The BSE Sensex concluded the session on Thursday with an approximate 0.4% increase, reaching 77,606, reversing the losses sustained in the previous trading day. This recovery was primarily driven by robust performances in major financial stocks such as HDFC Bank, ICICI Bank, and Bajaj Finance. These gains effectively counterbalanced the negative impact observed in the auto sector, which was under pressure following the announcement of new U.S. tariffs. Specifically, Tata Motors experienced a 5.5% decline due to concerns regarding a 25% tariff imposed by the U.S. on auto imports. This development poses a challenge for its subsidiary, Jaguar Land Rover, which derived approximately 23% of its fiscal year 2024 revenue from the U.S. market. Similarly, pharmaceutical stocks encountered pressure amid tariff concerns, given that the U.S. constitutes 31% of India's pharmaceutical exports. Investors are closely monitoring the ongoing trade discussions between the U.S. and India, seeking indications about the future trajectory of bilateral trade relations.