Is Your Portfolio at Risk? Discover 9 Stocks That Could Be Affected by Trump Tariffs – Should You Sell?

Trump’s upcoming trade tariffs, set to kick in on April 2, are already shaking things up in the Indian stock market, particularly affecting IT and auto sectors. While the market seems to have bounced back, analysts are cautious about the potential fallout from these tariffs. JM Financial points out that any harsh announcements could trigger another market dip.

Investors should keep an eye on stocks that might suffer losses due to these trade policies. VLA Ambala, a registered research analyst, notes several sectors that could be impacted.

IT Sector: Mphasis

The IT industry faces significant challenges from Trump’s trade policies and the possibility of rising H-1B visa costs. Major Indian firms, including TCS, Infosys, and HCL Tech, derive over 50% of their income from the US. Mphasis, which relies on the US for 79% of its revenue, is particularly at risk. Recently, its stock plummeted by 10% to 30%, trailing behind others like Infosys. Currently priced around Rs 2,500, analysts suggest a cautious approach, advising a ‘sell-on-rise’ strategy in the Rs 2,750–2,800 range.

Auto Sector: Bharat Forge

Trump’s tariffs on auto exports from China and Mexico threaten Indian auto parts manufacturers like Bharat Forge and Tata Motors. Bharat Forge, earning 44% of its income from US exports, has witnessed its stock drop from Rs 1,800 to Rs 1,000 in just six months due to decreased demand. Experts recommend buying if the stock falls to Rs 1,050–Rs 1,170 while being ready to sell if it approaches Rs 1,400.

Metal & Steel Sector: Tata Steel, JSW Steel

Potential increases in steel and aluminum tariffs could spell trouble for Indian exporters like Tata Steel and JSW Steel. Notably, Indian steel exports to the US dropped by 49% in FY24. While JSW Steel is currently in an overbought position at Rs 1,063, both JSW and Tata Steel have experienced losses of 2–4% recently. Analysts suggest a cautious stance moving forward.

Pharma Sector: Sun Pharma, Dr. Reddy’s, Cipla, Lupin

The pharma sector could face headwinds with stricter drug pricing and approval policies from Trump. Dr. Reddy’s, which gets 48% of its revenue from the US, might experience selling pressures. It’s noted as a ‘sell-on-rise’ candidate at Rs 1,250–Rs 1,150, with target prices around Rs 1,080–Rs 950. Similarly, Lupin and Cipla are under a cloud, facing potential declines if market conditions worsen.

Renewable Energy Sector: Borosil Renewables

If tariffs limit access to Chinese solar equipment, it could inflate costs for Indian solar firms like Borosil Renewables and Adani Green. Borosil, which derives 28% of its revenue from international markets, is trading at Rs 478. Analysts view it as a ‘sell-on-rise’ stock, with potential targets of Rs 440–Rs 400.

In sum, the upcoming tariffs will likely create waves across various sectors, and investors need to proceed with caution. Watching these trends and expert forecasts can help navigate the shifting landscape.

For ongoing updates on related financial trends, you can refer to resources like The Economic Times or Business Standard.

Disclaimer: The insights in this article are based on expert opinions and current market conditions. Always consult a qualified financial advisor when making investment decisions.

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