Tarifs impact : America has launched a tariff war in the world. The Trump government has announced a new tariff on Mexico, Canada and China. There is weakness in markets around the world about this tariff war. Indian markets are also not untouched by this. America’s move is positive to which sectors and negative for whom. Let’s take a look.
Tariff War’s impact on India
The impact of tariffs can prove to be better for the business of Indian companies. Indian companies will get more opportunity to spread business. Textile, electronics, will be positive for chemical companies. US companies will seek a chance for China +1. At the same time, the demand for Indian oil can increase due to tariffs on Canada oil-gap. Whereas FDI investment in India may increase due to China +1. However, there will be a risk of increasing inflation due to problems in the global trade supply chain.
Positive for chemical companies
Tariff War is positive for Indian chemical companies. The demand for Indian chemical will increase due to tariff on China. Pi indd Will benefit The company first faced pricing pressure from China but now it will be reduced. The company makes pyrosulfone, contributing 30–35% to income. Further strong improvement in the demand for pyrosulfone is possible.
Tariff UPL Will benefit Actually, the company makes Glufosinate, it has great demand in the US. Prices are broken by China competition. Now you will get relief.
There itself Jubilant Ingravia It is the only Pyridine company in the world except China. Agrochemical, pharma, semiconductor sector may increase demand.
Negative for pharma companies
The US has imposed a 25% tariff on Canada, which will harm pharma companies. Actually, many Indian pharma companies have plants in Canada. Tariff Piramal Pharma (Piramal Pharma) Can be damaged. In May 2022, the API plant was launched in Ontario, Canada.
There itself Sun Pharma (Sun Pharma) The subsidiary tarot is present in Canada. Many major tarot medicines are sold in the US. Jubilant farmova (Jubilant Pharmova) Can be damaged. The company is the CDMO Sterile Ophthalmic plant at Montreal, Canada. Lupine also has a strong presence in Canada.
Auto accelerate companies damage
Indian companies export production in Mexico. Mexico has 3% of the total exports. The export of $ 65.6 CR is on Mexico. In Mexico Gold blw Is a factory. 2% of the company’s total income comes from Mexico.
At the same time in Mexico, US Enhancement mother There are many plants of. 4% of the company’s total income comes from here.
Metal sector shock
The US will turn its goods towards countries like India. Over supply will bring pricing pressure on Indian companies. Indian metal companies import raw materials, equipment on a large scale. Import from a strong rupee will be expensive and there is a possibility of pressure on the margin.
Market Outlook after Budget 2025: Capital Goods, Money from Industrials will now go on consumption shares, consumer discretionary, QSR shares will also benefit