The Indian equity markets closed on a mixed note on Thursday as investors grappled with the implications of former US President Donald Trump’s new tariff announcements. The BSE Sensex fell by 322 points to 76,295, while the Nifty 50 dropped 82 points to 23,250 amid global economic uncertainties.

However, the broader market showed resilience, with the Nifty Bank index rising 249 points to 51,597 and the Midcap index adding 109 points to 52,162, supported by strong performances in financial and pharmaceutical sectors. The market breadth favoured advances, with an advance-decline ratio of 5:2, indicating a healthy proportion of gainers in the broader indices.

The pharmaceutical sector emerged as a standout performer, with the Nifty Pharma index surging 2% after the sector was exempted from the new U.S. tariffs, providing a relief rally. This helped offset some of the losses in the broader Nifty 50 index.

Conversely, the IT sector bore the brunt of investor concerns, falling sharply by 4% amid worries about global growth and potential impacts of the tariffs on export-oriented businesses. TCS, Infosys, HCL Technologies, Wipro, and Tech Mahindra—five of the top six Nifty losers—were all IT stocks, declining between 3-4%. Midcap IT stocks, including Persistent Systems, Coforge, and KPIT Technologies, saw even sharper declines, with losses of up to 10%.

Vinod Nair, Head of Research, Geojit Investments Limited said,”The domestic market initially showed signs of recovery but ended with modest losses after the announcement of a relatively lower 26% tariff on US imports. The IT and auto sectors experienced selling pressure due to US slowdown concerns and disruptions in the supply chain. Conversely, pharmaceutical stocks benefited from being exempt from the tariffs. Nonetheless, robust domestic macroeconomic data and lower crude oil prices aided the broader market performance. Although the tariff presents short-term challenges, India’s economic resilience and bilateral trade agreement may help mitigate the overall impact.”

The auto sector closed 1% lower, despite being exempt from reciprocal tariffs. The sector continues to grapple with the lingering effects of the earlier 25% tariffs, which have pressured margins and consumer demand.

Among individual stock movements, Punjab National Bank (PNB), Bank of Baroda (BoB), and Bank of India posted gains of 2-3% following strong quarterly updates, reflecting robust performance in the banking sector. Marico closed near its session highs, adding 1% after reporting healthy growth for Q4.

In contrast, Dabur reported a weak quarterly update, with its stock falling sharply by 6%. Additionally, shrimp-related stocks, particularly Avanti Feeds, experienced a dramatic 15% decline amid market fears over the potential impact of Trump’s tariffs on the seafood export industry.