Tale of the Tape 

Hola Amigos. Welcome back to the market of stocks!

Nifty (-0.5%) and Sensex (-0.4%) closed down tracking the weakness in global equities. Midcaps (-0.9%) and Smallcaps (-2.1%) also followed suit. 363 stocks in the NSE 500 ended lower.

Most sectors ended in the red. Energy (-3%) was the top loser, followed by Metals (-1.7%) and PSU Banks (-1.6%). IT stocks (+0.7%) bucked the market trend.

Trump’s big tariff moves are finally here. Read our top story to understand WTF is happening and how it affects India.

Divi’s Labs (+6%) gained after its Q3 easily beat Street estimates.  Neogen Chemicals (+5%) had a solid Q3 show. More details below.

Railway stocks got hammered today. Check out their charts below to find out why.

Samvardhana Motherson (-9%) fell over worries that its exports to Mexico would be hurt by Trump’s tariffs

Swiggy rallied +5% after Kotak Institutional Equities said they see a further +10% upside from current levels..

Eicher Motors (+2%) January total sales beat estimates on strong exports growth. 

Results reaction. Man Infra dropped -4% on flat Q3 revenues. Alembic Pharma (-3%) posted a 23% YoY drop in profits.

Here are the closing prints:

Market
Pay Up, Or Else!

Markets took a hit today following a global meltdown caused by Trump’s trade war. ICYMI - Trump imposed a 25% bump in duties on all imports from Canada & Mexico and 10% on those from China. All three countries will retaliate with their own tariff increases, which means things will get dicey. This has BIG consequences for India, so strap in.

Firstly, a quick ‘Tariffs 101’: Import duties are taxes you place on stuff that you ship in from other countries. For example, if Trump raises tariffs on Indian products, our companies have two choices. Either they do nothing and see demand for their goods fall (cause it becomes more expensive for American firms to buy our products). Or they lower their prices to offset the duty bump and see their margins & profits fall. An awful situation. 

What should India be doing? Experts say there’s two major things at play:

1) Take advantage: The current tariffs are an opportunity for India to export MORE to US, Canada, Mexico and China. All of them will be looking to find new & cheaper import sources and we should step in. PS - even if Trump imposes tariffs on us, analysts say we can exploit tariff differentials. For instance, China is hit by 25% tariffs but India only 10%, we can still compete with them in exporting stuff to the US because the burden is less on us.

2) Appeasing Trump: India has escaped Round 1, but Trump has called us a tariff abuser in the past. The GOI has already started with cuts on key US exports like Harley Davidson motorcycles, ethernet switches and fertilisers! But we should be prepared with more when the time comes. FYI - Modi is meeting Trump later this month, so keep an eye out for what happens there.

Big Picture: IT and pharma should be Trump-proof, say experts. But everything else is in danger. If you’ve invested big on an export play, take a deep re-look as things play out.

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Live ONLY on our Instagram handle at 4 PM, Tomorrow 4th Feb, 2025! ⏰