Donald Trump’s announcement of a 90-day pause on tariffs amid the U.S.-China trade war has sent a wave of relief through global markets – and India is no exception. After weeks of volatility and recession fears spurred by escalating tariffs, this temporary truce has improved investor sentiment. India’s benchmark indices, the BSE Sensex and NSE Nifty, are poised for a strong rebound following the pause. Retail investors in India are now closely watching which sectors of the stock market stand to benefit the most from this tariff relief and why. In this analysis by Riddhi Siddhi Share Brokers, we break down the sectoral impact – from export-oriented industries to commodity producers – considering supply chain shifts, export-import dynamics, commodity prices, and global investor sentiment.
IT and Software Services – Rebound on Improved US Outlook
Information Technology (IT) stocks are among the biggest beneficiaries of the tariff pause. Indian IT services companies like TCS, Infosys, HCL Technologies, and Coforge derive a large share of their revenue from U.S. clients. With the 90-day ceasefire, recession worries have abated for now. Key positives for the sector include:
- Stabilizing client sentiment
- Currency and margin cushion
- Strong order pipeline from the U.S. and Europe
Riddhi Siddhi Share Brokers recommends tracking: Stocks to Watch: Infosys, TCS, HCL Tech, Coforge, Persistent Systems
Metals and Commodities – Lifting on Tariff Relief and Higher Prices
Metal and mining companies, which were worst hit by trade war fears, stand to gain significantly from the tariff pause.
- Rising global metal prices
- Renewed demand expectations
- Boost from China’s potential stimulus
Stocks to Watch: Tata Steel, JSW Steel, Hindalco, Hindustan Copper
According to Riddhi Siddhi Share Brokers, this sector could lead the short-term recovery.
Automobiles and Auto Components – Gearing Up for Trade Diversion
Auto manufacturers and ancillary suppliers benefit from both direct relief and potential export demand from countries looking to avoid Chinese products.
- Direct tariff relief on Indian exports
- Supply chain shifts from China
- Stronger outlook for export components and EV parts
Stocks to Watch: Motherson, Bharat Forge, Sona BLW, Bosch, Mahindra & Mahindra
Clients of Riddhi Siddhi Share Brokers should stay updated on key developments in this segment.
Textile and Apparel – Weaving a Gain from China’s Woes
India’s textile exporters could gain market share as Chinese goods become costlier due to high U.S. tariffs.
- Opportunity from trade diversion
- Supportive government policies like PLI scheme
- Large U.S. retail chains seeking alternatives to China
Stocks to Watch: Welspun Living, Trident, Vardhman Textiles, Grasim Industries
Electronics Manufacturing – Supply Chain Shifts to India’s Advantage
Electronics and hardware producers are beneficiaries of supply chain realignment.
- Apple and other OEMs expanding Indian manufacturing
- PLI scheme for electronics encourages exports
- Component and contract manufacturing opportunities
Stocks to Watch: Dixon Technologies, Kaynes Tech, Syrma SGS, Tata Electronics (unlisted)
As always, Riddhi Siddhi Share Brokers encourages long-term investors to monitor trends in India’s evolving electronics ecosystem.
Pharmaceuticals and Specialty Chemicals – Stability and New Demand
These defensive sectors get indirect benefits as trade disruptions ease.
- Pharma avoids tariff shock and API cost spikes
- Specialty chemicals to benefit from China+1 sourcing strategy
Stocks to Watch: Sun Pharma, Dr. Reddy’s, Lupin, Navin Fluorine, SRF, Atul Ltd
Riddhi Siddhi Share Brokers sees long-term growth potential in this space due to resilient global demand.
Other Export Sectors: Agriculture, Gems and Jewellery
- Seafood exporters like Avanti Feeds benefit from resumed exports
- Gems and jewellery exporters avoid U.S. duties temporarily
- Medical device exporters avoid margin pressure
Domestic Sectors Benefit Too: Banks, Realty, and Consumer Stocks
- Banking & Financials: Positive FII flows, stable rupee, and improved credit outlook
- Real Estate: Low interest rates and investor confidence help sales
- Consumer Goods: Benefit from improved demand and stable input costs
Stocks to Watch: HDFC Bank, ICICI Bank, SBI, DLF, Godrej Properties, Titan, Hindustan Unilever
Riddhi Siddhi Share Brokers highlights these sectors as part of a broader sentiment-led recovery.
Key Takeaways for Investors
- Export Winners: Electronics, textiles, auto components, chemicals, and pharma stand to benefit.
- Cyclical Boost: Metals, auto, and capital goods may gain in the short term.
- Liquidity Returns: Financial and real estate sectors gain from improved capital flows.
- Long-Term Theme: China+1 supply chain shifts to India will benefit manufacturing and electronics.
- Caution Ahead: It’s a temporary truce. Stay alert to further updates and reallocate if needed.
For detailed investment advice and personalized portfolio planning, reach out to Riddhi Siddhi Share Brokers.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions. This market update is proudly brought to you by Riddhi Siddhi Share Brokers.