Tale of the Tape 

Good evening ya’ll!

Markets got KO-ed today, with the Nifty and Sensex falling -1% each, after the White House  confirmed that 50% tariffs would kick in from tomorrow. The hit was worse in broader markets as Midcaps (-1.6%) and Smallcaps (-2%) saw even deeper cuts. The overall market breadth was extremely negative with 4 stocks ending down for every 1 up.

Except FMCG (+0.9%), every other sector ended in the red. Real Estate (-2.2%) led the sell-off, followed by Metals (-1.7%) and Oil & Gas (-1.6%).

In today’s issue of the Daily Rip, we decode the impact of Trump’s tariff blitz, analyse Anlon Healthcare’s IPO, look at the biggest newsmakers and more.

Honourable mentions: 

Maruti Suzuki was up +2% after it flagged off its first e-Vitara; sales will start in September. Meanwhile, Sun Pharma was down -3% after BofA downgraded the stock and cut its target price to Rs 1,570 p/sh (vs Rs 1,730 p/sh earlier).

Check out the NSE 500 heatmap:

Market
50% Tariff Kicks In But…

Trump’s brutal 50% tariffs on India will kick in from tomorrow! This is the day we’ve been dreading folks and it’s why the Nifty is flat over the last month. There’s BIG implications for our economy and some sectors. So here’s a quick cheatsheet on what to expect.

First up, the macro stuff. If the 50% duties stick, we could see a 70-100bps hit to our GDP. This means growth will fall below 6% in FY26 for the first time since the pandemic. It will also lead to layoffs. And yes, slower growth = slower recovery in corporate earnings, which sucks.

Then there’s sectors, which is what you guys really care about. Textiles, chemicals, auto components and seafood will be hit hard. All the big players here have a significant (10%-50%) topline exposure to the US market. But remember, do your research. Not all companies will be hit equally. For example: both Gokaldas Exports and Pearl Global can supply US customers from factories in Africa & Bangladesh. Ditto for Motherson Sumi ( from Mexico). For firms like Tata Motors, the tariff hit was rough in Q1 but will cool off over the rest of the year. And for others like UPL (US is ~10-12% revenue), they may have no choice but to take a hit. 

Zooming out: The GOI isn’t sitting still either. GST tax cuts should hopefully boost demand and absorb some of the excess export capacity & supply. Reports also say we’re loading up a Rs 25,000-cr liquidity package for exporters separately. It’s also clear we need to focus on ourselves. Modi says self-reliance aka swadeshi is the way forward. And it’s true; this is a wake-up call for our global companies who focused too much on the US. As the PM said: “No matter how much pressure comes, we will keep increasing our strength to find a way out of it.”

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Vijay Kedia Portfolio Changes

Who doesn’t want to know which stocks legendary investor Vijay Kedia is currently holding? In this video, we cover his top holdings and latest portfolio updates along with fundamental views on the same.