Trump’s 25% Tariffs: How Indian Businesses in Auto, Pharma & Tech Could Be Affected

Hello Investor!

In a bold move set to reshape global commerce, President Donald Trump has announced plans to impose a 25% tariff on imports of automobiles, pharmaceuticals, and semiconductors. This decision aims to address perceived trade imbalances and protect domestic industries. The tariffs are slated to take effect on April 2, following detailed reports from cabinet members outlining implementation strategies.

But before we dive into today’s updates

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Today’s Market Menu

• Focal Point: Trump’s 25% Tariffs: India’s Exporters Brace for Trump’s 25% Tariffs – What’s at Stake?

• Markets

• Everything else you should know today

• Tutorial: The Top 10 Mistakes New Traders Make

• Supercharge your Investing Skills

• Management Speaks: BigBloc Construction, Apollo Tyres, Jash Engineering

• Stock Screener to up your game

FOCAL POINT

India’s Exporters Brace for Trump’s 25% Tariffs – What’s at Stake?

President Donald Trump's proposed 25% tariffs on imported automobiles, pharmaceuticals, and semiconductors are poised to shake up global trade—and Indian businesses are not immune. 🇮🇳 With the U.S. being one of India’s largest export markets, these tariffs could significantly affect key sectors, from auto manufacturing to pharmaceuticals. Let’s break down how these changes may impact Indian industries and what businesses can do to stay competitive.

How Trump's 25% Tariffs Could Impact Indian Businesses

🚗 Impact on Indian Automobile Exports:

▪️ Indian automakers exporting to the U.S. could face higher import costs, potentially reducing competitiveness.

▪️ Tata Motors (Jaguar Land Rover) and other exporters may experience pricing pressures, affecting sales volume.

▪️ However, a shift in global trade focus could boost domestic demand as exporters look beyond the U.S. market.

💊 Effect on India’s Pharmaceutical Industry:

▪️ India, a leading supplier of generic drugs to the U.S., could see profit margins squeezed by the new tariffs.

▪️ Major players like Sun Pharma and Dr. Reddy’s may face renegotiated contracts or delayed shipments.

▪️ The move could drive Indian pharmaceutical companies to diversify export markets or ramp up local U.S.-based production.

💻 Semiconductor and Electronics Sector Outlook:

▪️ Indian electronics manufacturers reliant on imported U.S. semiconductors may face increased production costs.

▪️ On the upside, the tariffs could accelerate India’s push for domestic semiconductor manufacturing under the Make in India initiative.

▪️ Indian tech firms may explore alternative supply chains to mitigate cost pressures.

🤝 Broader Implications for India-U.S. Trade Relations:

▪️ The Indian government may pursue diplomatic talks to secure exemptions or soften the tariff impact.

▪️ Businesses with a diversified global footprint will likely weather these changes better than those dependent on U.S. markets.

▪️ These developments underscore the importance of resilient supply chains and proactive market diversification.

The proposed 25% U.S. tariffs could pose immediate challenges for Indian exporters, especially in the automotive, pharmaceutical, and semiconductor sectors. Yet, this shift presents an opportunity for India to strengthen domestic industries, diversify exports, and reinforce its global trade strategy. Companies that adapt swiftly will be best positioned to thrive in this evolving landscape.

MARKETS

Sensex closed marginally lower at 75,939.18 points, while the Nifty 50 slipped to 22,932.90. IT giants TCS and Infosys dropped by 2% each. Financial stocks provided support, whereas pharma and auto sectors lagged. Small-cap stocks showed strong gains, and gold prices reached a record high of ₹86,549 per 10 grams. Metal counters witnessed mixed action, with investor attention on global commodity cues.

_{Closing figures as on 19.02.25 (3.30pm IST)}

🔎 Stocks in Focus

🔻IT stocks led losses with TCS (-2.30%), Infosys (-2.22%), and HCL Tech (-3.50%) dragging the sector.

✅Financials outperformed, with ICICI Bank (+1.50%), Axis Bank (+1.73%), and Kotak Bank (+1.10%) supporting the market.

✅Producer Manufacturing saw gains with Siemens (+2.30%).

✅Transportation stocks like Adani Ports (+4.83%) surged.

🔻Utilities struggled as Adani Energy (-3.66%) fell.

✅Reliance edged up (+0.17%), while 🔻Bharti Airtel declined (-1.42%).

NIFTY 500 Heatmap today: Some Greenery

Institutional Action

_{Provisional Figures (Rs. in Crores)}

FROM THE FRONTIER

Everything else you should know today 

🍔 QSR Game: Despite a challenging economic environment, quick-service restaurants (QSRs) are capturing a larger share of the food delivery market. Brokerage analyses reveal that strategic initiatives, such as value-driven offerings and enhanced delivery services, have enabled QSRs to attract cost-conscious consumers.

🔻FII Retreat: Foreign Portfolio Investors (FPIs) have cut their India allocation to a two-year low amid concerns over weak earnings, slowing growth, and global trade uncertainties. FPIs have sold $12.3 billion in Indian shares this year, as more attractive valuations in markets like China and Korea lure investments away.

💵 BuyBack: Nava Limited's Board has approved a buyback of up to 72 lakh fully paid-up equity shares at ₹500 per share, totaling ₹360 crores. This move aims to return value to shareholders, representing 2.48% of the company's equity. The buyback will proceed through a tender offer, with promoters opting out, ensuring greater participation for public shareholders. The record date is set for February 28, 2025.

⚡ Powering Ahead: India's Ministry of Heavy Industries has partnered with Reliance New Energy Battery Ltd., awarding a 10 GWh capacity under the ₹18,100 crore PLI Scheme for ACC battery storage.

🖲️ Hexaware Technologies: Hexaware Technologies, a leading IT solutions provider, has achieved a significant milestone by launching India's largest-ever Initial Public Offering (IPO) in the IT services sector. This landmark event not only sets a national record but also stands as the largest technology services IPO globally this year. The shares listed at a 5.3% premium at Rs. 745.50 and eventually closed at Rs. 762.55.

🦠 Cyber Attack: Raymond Lifestyle Limited has reported a cybersecurity incident affecting certain IT assets, which have been promptly isolated. The company's core systems, customer services, and store operations remain fully operational and unaffected.

💰Order Wins

✅ Apollo Micro Systems: Bags ₹12.07 crore private order and emerges as the lowest bidder for a ₹5.97 crore defense contract.

✅ Arkade Developers: Signs a ₹740 crore development deal for a luxury residential project in Malad West, Mumbai.

✅ JBM Auto: Subsidiary secures a ₹5,500 crore contract to supply and operate 1,021 electric buses across 19 Indian cities under the PM-eBus Sewa Scheme.

Promoter Action in Open Market

ONEZERO-F ACADEMY

The Top 10 Mistakes New Traders Make

Jumping into trading can be thrilling, but one wrong move could cost you big. Whether you're just starting out or brushing up your strategy, understanding common pitfalls is key. This breakdown of the Top 10 Mistakes New Traders Make will help you dodge errors, sharpen your skills, and boost your chances of success.

▪️ Trading Without a Plan:

❌ Entering trades impulsively without a clear strategy leads to poor decisions.

✅ Successful traders rely on a well-defined plan with entry, exit, and risk parameters.

▪️ Ignoring Risk Management:

❌ Risking too much on one trade can wipe out your account.

✅ Use stop-loss orders and limit risk to a small percentage of your capital.

▪️ Overtrading:

❌ Trading too frequently, often driven by emotions, results in unnecessary losses.

✅ Focus on quality setups over quantity.

▪️ Letting Losses Run:

❌ Holding onto losing trades, hoping for a rebound, deepens losses.

✅ Cut losses quickly to preserve capital.

▪️ Failing to Take Profits:

❌ Greed causes traders to miss profit-taking opportunities.

✅ Stick to your targets and secure gains when met.

▪️ Trading on Emotion:

❌ Fear and greed cloud judgment and lead to rash decisions.

✅ Stay disciplined and follow your trading plan.

▪️ Not Using Stop-Loss Orders:

❌ Trading without stop-losses leaves you exposed to significant losses.

✅ Always use stops to manage downside risk.

▪️ Overleveraging:

❌ Using excessive leverage can magnify losses beyond your investment.

✅ Trade with manageable leverage to protect your account.

▪️ Failing to Learn Continuously:

❌ Markets evolve—traders who don’t adapt get left behind.

✅ Invest in ongoing education and market research.

▪️ Unrealistic Expectations:

❌ Expecting overnight riches leads to reckless decisions.

✅ Understand trading is a long-term skill-building journey.

Avoiding these common mistakes can make the difference between trading success and costly setbacks. Stay patient, stay disciplined, and remember—trading is a marathon, not a sprint!

SUPERCHARGE YOUR INVESTING SKILLS

This Interactive Lecture by Mukul Mahavir Agrawal will change your Investing Psychology Forever

MANAGEMENT SPEAKS

Management Call Highlights

✅ Bigbloc Construction Limited reported a 10% quarter-on-quarter revenue growth, reaching ₹57 crores. However, the EBITDA margin declined to 10.74%, influenced by lower demand during the festive season and state elections in Maharashtra. The management remains optimistic, focusing on strategic initiatives to enhance operational efficiency and market reach in the upcoming quarters.

✅ Jash Engineering Limited's COO, Mr. Bhuvanesh Pandey, highlighted a consolidated revenue achievement of ₹522 crores. The company emphasized its global presence, serving major countries with a diverse product portfolio. Looking ahead, the management is committed to expanding their market footprint and enhancing product offerings to meet evolving industry demands.

✅ Apollo Tyres Limited's Q3 FY25 conference call revealed an 8% sequential increase in consolidated top-line growth, despite challenges like elevated raw material costs. The company maintained a stable margin of 13.7%, attributed to effective cost control measures. Vice Chairman and Managing Director, Mr. Neeraj Kanwar, expressed confidence in improved operating performance, driven by demand recovery and strategic profitability initiatives in both Indian and European markets.

STOCK SCREENER TO UP YOUR GAME

Stocks with Good FCF Yield & Growth

By Jindal Naveen

Market Capitalization > 100 AND
Sales growth 3Years > 20 AND
Profit growth 3Years > 20 AND
Price to Free Cash Flow < 5 AND
Price to Free Cash Flow > 0 AND
Price to Earning < ( Sales growth 3 Years - 5 )

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Thanks for reading.

Until tomorrow!

Mohit & the OneZero-F team

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