Auto stocks extended their two-day decline to 2%. Mahindra & Mahindra shares dropped 2.8% on Friday, while Tata Motors tumbled 6% over the last three sessions amid fears of a 25% tariff on auto exports to the U.S. Analysts warn that Tata-owned Jaguar Land Rover (JLR) could be particularly affected.
Samvardhana Motherson International, which has exposure to U.S. and European markets, lost 1.6% over the past three sessions, while Sona BLW Precision Forgings slid more than 8% in the last four sessions.
Pharma stocks mirrored the downturn, shedding 0.9% on Friday. The U.S., which accounts for roughly a third of India’s pharmaceutical exports, remains a key market for the sector. Shares of Cipla, IPCA Labs, and Alkem declined between 1% and 2%, while Dr. Reddy’s Labs, Sun Pharma, and Biocon lost up to 1%.
Investor caution deepened ahead of the April 2 deadline, when U.S. President Donald Trump’s tariff plan is set to take effect. The administration has indicated that not all tariffs will be imposed immediately, leaving markets uncertain about the full extent of the impact.
“The market’s resilience, despite Trump’s reciprocal tariff threats, comes from renewed buying by foreign institutional investors (FIIs) and the confidence this has given to the bulls,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments. “However, in this time of heightened uncertainty, investors should remain calm and wait for the dust to settle.”Beyond trade concerns, the Federal Reserve’s preferred inflation gauge—the Personal Consumption Expenditures Price Index—due later on Friday, could offer insight into the trajectory of U.S. interest rates. Investors are also watching the Reserve Bank of India’s monetary policy decision on April 9, which could influence market liquidity and financial stocks.Despite the auto and pharma slump, broader Indian markets showed resilience, buoyed by foreign portfolio investor (FPI) inflows. FPIs bought Rs 11,111 crore worth of Indian shares on Thursday, marking the highest single-day inflow in six months and extending a six-session buying streak.
Also read | Auto, pharma stocks fall up to 6% in 3 sessions hit by Trump tariff fears. Experts say fears overblown
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