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This decision of US President Donald Trump feared a decline in Indian stock market on 31 July

A big business decision has been taken by the US regarding India. President Donald Trump has announced that the imports to the US from India will now be charged 25% tariffs. Also, a separate penalty will also be implemented on India due to buying weapons and crude oil from Russia. This new tariff and fine will come into effect from 1 August 2025.

The direct impact of this decision can be seen on the Indian stock market of 31 July today. Especially those sectors that export a huge amount to America, the possibility of decline has increased. Presses in areas such as pharma, textile, electronics, james and jewelery and shrimp exports may come under pressure.

Pharma sector under the biggest killing

A large part of the Indian pharmaceutical industry is exported to America. According to the CNBC-TV18 report, the major pharma companies of the country like Sun Pharma, Lupine and Dr. Reddy's Labs send a large part of their total exports to the US. Till now there was no tariff or very little on these products. But now it is likely to increase to 25%.

This increase can have a direct impact on the earnings of pharma companies, so that their shares can slip in the July 31 trading. Investors are being advised to monitor these shares.

James and Jewelery sector can show strong effect

In FY 2023-24, about 30% of India's James and Jewelery sector exported to the US. The largest part of them was severed and polished diamonds, which had about $ 5.6 billion. Till now there was no tariff on them, but from August 1, a tariff increase of up to 19% on gold-silver jewelery (Jadau and plane) will be implemented.

It may have a direct impact on shares of companies like Rajesh Exports, Titan and Kalyan Jewelers. The sector was already under pressure due to Russia-Ukraine War and instability in West Asia, now the strictness of America can be worsened.

Cama Jewelery MD Colin Shah has said that this decision is a danger bell for sectors who are dependent on the US. He says that the upcoming meeting of the Indo-US trade talks can provide some relief, but the pressure cannot be denied at the moment.

Shrimp and textile sector also fixed

The US holds 41% stake in shrimp exports. Currently, it costs 17.7% custom duty, which will now increase to 25%. This can affect the profits of companies like Avanti Feeds and Apex Frozen Foods. At the same time, cotton textile and apparel can be seen the most impact in the textile sector. Tariffs on these can go directly up to 25%. However, products like carpet and woven fabric are already levying 1520% tax, so the effect will be limited there. Stocks like Welspon Living, Arvind Limited and Alok Industries are expected to stir.

Investors need to be vigilant

Trump's decision has created a new challenge in front of Indian export -based companies. If America maintains its stance, then the profitability of many sectors will be affected. On July 31, the first response to this decision in the stock market can be seen.

Investors are advised to keep an eye on the stocks of companies whose business is directly dependent on the US. Also, it will be necessary to see whether there is any relief from the Indo-US trade meeting to be held in late August.

Disclaimer: This article is only for information and should not be considered as an investment advice in any way. TV9 India suggests its readers and spectators to consult their financial advisors before taking any decision related to money.