Tata Motors, Bharat Forge, Balkrishna, Bajaj Auto, Motherson & TVS: Auto stocks slip after Trump's tariff strike

Shares of domestic automobile and auto ancillary companies such as Bharat Forge, Bajaj Auto, Balkrishna Industries, Tata Motors, Samvardhana Motherson International, Tube Investments of India, TVS Motor, Ashok Leyland and MRF witnessed selling pressure in Thursday's trade after US President Donald Trump imposed reciprocal tariffs on its trading partners, including India.

Select auto stocks were among the top losers today with shares of Bharat Forge falling 2.50 per cent. Balkrishna, Bajaj Auto, Motherson, TVS Motor and Tata Motors shares were down 2.44 per cent, 2.39 per cent, 1.68 per cent, 1.34 per cent and 1.32 per cent, respectively. Ashok Leyland, MRF and Tube Investments slipped up to 0.70 per cent.

Trump imposed a tariff of 27 per cent on Indian imports and a 34 per cent tariff on neighbouring China. According to a commerce ministry official, 10 per cent tariffs will come into effect on imports into the US from April 5, and the remaining 17 per cent from April 10.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said the recent tariff announcement is going to have a medium- to short-term impact on companies like Tata Motors, given its global exposure. "The remaining Indian OEMs (Original Equipment Manufacturers) are by and large insulated as they are mostly focussed on the domestic front. From the auto ancillary space, companies like Motherson will see some impact. In the longer run, one can consider buying Indian OEMs on dips," he added.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the tariff announcement could be bad news for the global economy and markets. "The worse-than-expected reciprocal tariffs announced by Trump will have a negative impact on markets, globally. The biggest concern is that this will trigger retaliatory tariffs from other countries resulting in a full-blown trade war, impacting global trade and global growth. Higher inflation in the US will put the Fed in a tight spot; it would be difficult for the Fed to deliver the rate cuts expected by the market in 2025. The probability of a US recession by the end of 2025 has increased," he stated.

Meanwhile, Indian equity benchmarks were last seen trading in negative territory today.