How Did Stock Markets React Worldwide After Donald Trump's Reciprocal Tariffs Announcement

Global stock markets witnessed sharp volatility after US President Donald Trump announced reciprocal tariffs. The Indian stock market also felt the heat, opening lower on Thursday before recovering slightly in later trading hours. Asian markets, particularly Japan and China, saw significant declines, while US markets closed positively in the previous session. Investors and traders remain on edge as concerns over economic instability rise.

Indian Stock Market Reaction to Trump's Reciprocal Tariffs

The Indian equity market opened with losses following Trump's tariff announcement. At 9:20 am, the BSE Sensex fell by 470 points (-0.61%) to 76,197, while Nifty 50 declined 105 points (-0.45%) to 23,227. However, after initial losses, markets showed resilience, with Sensex trading at 76,344 (down 288 points, -0.36%) and Nifty at 23,270 (down 61 points, -0.26%) by 11:33 am.

Midcap and small-cap stocks performed better than large-cap stocks. The Nifty Midcap 100 gained 125 points (+0.24%) to 52,183, while the Nifty Smallcap 100 rose 121 points (+0.75%) to 16,283.

Major Losers and Gainers in the Stock Market Today

While most sectoral indices traded in the red, Nifty IT suffered the worst blow, dropping 1,405 points (-3.89%). Other sectors like Auto, Metal, and Finance also saw declines, adding to market pressure.

Key losers in the Sensex pack included: Infosys, HCL Tech, TCS, Tech Mahindra, Tata Motors, Bharti Airtel, Reliance, ICICI Bank, and Kotak Mahindra Bank

Meanwhile, stocks such as Sun Pharma, Power Grid, NTPC, Bajaj Finance, Titan, UltraTech Cement and Asian Paints showed resilience, trading in the green.

Market Experts on US Reciprocal Tariffs and Global Impact

Vikram Kasat, Head-Advisory at PL Capital-Prabhudas Lilladher, warned that large tariff shocks could push the US and global economy into a recession.

"In broad terms, Canada and Mexico were less affected, while Asian nations like China and Vietnam took the biggest hit. The European Union and Japan faced moderate impacts. However, escalation concerns remain if other nations retaliate with their own tariffs," he added.

Global Stock Market Reaction to Trump’s Reciprocal Tariffs

The ripple effect of Trump's tariffs was evident across Asian stock markets, with major indices seeing sharp declines:

• Japan’s Nikkei 225 fell 1,172.53 points (-3.28%) to 34,553.34
• Hong Kong’s Hang Seng Index dropped 442.56 points (-1.91%) to 22,759.97
• Shanghai Composite (China) slipped 8.5 points (-0.25%) to 3,341.62
• Shenzhen Component (China) lost 138.35 points (-1.32%) to 10,374.77
• South Korea’s KOSPI declined 27.55 points (-1.1%) to 2,478.31

Despite widespread losses, US stock markets managed to close in the green in the previous session, indicating mixed sentiments globally.