Auto stocks drop up to 4% on US tariff hike, export concerns rise
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Nifty Auto index stocks, including Balkrishna Industries, Bharat Forge, Bajaj Auto, Tata Motors, and Motherson, fell up to 4% in Thursday’s trade after the Trump administration imposed a 26% blanket tariff on Indian imports. Analysts view this as a major setback for India’s export-driven sectors, particularly automobiles. The automobile sector, which contributes around 3% of India's total exports to the US, is expected to face pressure. "A 26% blanket tariff will likely impact demand and the competitiveness of Indian automobile exports in the American market. This could lead to increased production costs, potential layoffs, and supply chain disruptions," Macquarie noted. The brokerage also warned that such steep tariffs across industries could impact India’s GDP by up to 50 basis points. India’s auto component exports to the US account for one-third of the total industry exports of $21.2 billion. However, in the US import ba...