FX.co ★ Sensex Falls After Trump Announces 26% Reciprocal Tariff

India's stock market experienced a decline of 327 points, or 0.4%, bringing the index to 76,300 during Thursday's morning session. This dip interrupted the upward momentum observed in the previous session and followed the announcement by U.S. President Trump of a 26% reciprocal tariff on India. Concurrently, Trump declared a 25% tariff on auto component imports to the U.S. This news adversely affected the BSE Sensex, mainly due to a downturn in the tech, metals, and auto sectors, reflecting a broader slump seen in U.S. futures. The implementation of these tariffs stoked fears of an escalating global trade war, as China pledged to take "resolute" countermeasures to protect its interests against previous tariffs imposed by the Trump administration on Chinese goods. Nevertheless, the decline in the market was somewhat checked by encouraging data from China, India's leading trading partner, revealing that its private sector saw the highest growth in four months according to a recent survey. The Nifty 50 index also saw a reduction of 0.4%, falling below 23,300, with significant losses from major companies such as Tata Consultancy Services (-2.4%), Infosys (-2.4%), HCL Tech (-2.3%), Tech Mahindra (-2.1%), and Tata Motors (-1.6%).