How the U.S. 25% tariff plus penalty on India impacts India’s textile, IT, auto, and pharma stocks

Textile, IT, Auto and Pharma Stocks were doing less trading on Thursday (31 July 2025), when US President Donald Trump announced a 25% tariff on all goods coming from India starting on August 1, as well as an unlucky punishment for purchasing Russian crude oil and military equipment.

Among textile shares, Wellspun Living recorded 5.27%, Vardhman Textiles declined by 3.27%, declined by 3.16% Arvind Limited by 3.16% and Alok Industries fell 2.82% on BSE.

From IT pack, hexware technologies shares below 1.92%, Wipro traded 1.44%less, Infosys 1.34%dropped, Tata Consultancy Services 1.19%, HCL Technologies (1.06%) and Tech Mahindra (0.88%).

Tracking the weak trend in these shares, the BSE IT index declined by 1.29% to 34,577.71.

Among the pharma shares, Jubilant Farmova Fall 3.15%, IPCA Lab 3.28%, Lupine (2.63%), RPG Life Sciences (2.56%), Dr. Reddys Lab (1.55%), Cipla (1.43%) and Sun Pharma (0.81%) slipped.

Shares of Maruti Suzuki India, Bajaj Auto, Ashok Leyland, Tata Motors, Mahindra & Amp; Mahindra and TVS Motor Company were also citing lower.

The BSE Auto Index from 0.72% to 52,708.33.

In the equity market, 30-cheer BSE Sensx traded 574.64 points at 80,906.60, and 50-Sharir NSE Nifty increased by 173.50 points by 24,678.85.

This announcement has been seen as a pressure strategy to achieve New Delhi to agree to the US demands, which have been found in recent times, adaptable trade deals with key partners such as Japan, UK and European Union.

The fine was announced as India has made huge purchases of oil and military equipment from Russia. India is the first country to face punishment for Russian imports.

Head of research, head of research, institutional equity in choice broking, said that investors would assure their strategies with a mixture of caution and optimism.

Sectors such as textiles, pharmaceuticals, and automotive components are most likely to be affected and it can see low investor interest in short term.

However, the recent progress in business talks suggests to pursue a creative route, and “We believe that the trade deal will eventually follow, provided the two nations show the necessary political willpower”, he said, many investors hope that the tariff rate will eventually settle around 15%.

“While 25% tariffs imposed by the US on Indian exports certainly disrupts important sectors and presenting immediate challenges for India’s economy, it is impossible that it will significantly change the country’s long -term development path.

Rajesh Palavia, SVP – Research, Axis Securities said, “The story of India’s development is supported to increase concrete basic things such as a growing domestic market, a sense of vibrant entrepreneurship and international participation.”