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In this weekly market roundup, we will revisit the events that triggered the markets worldwide. Throughout the week, global markets experienced significant volatility. The primary factor influencing these fluctuations was the Trump Tariffs, affecting markets from Japan to the United States. On April 2, 2025, President Trump issued an executive order that imposed higher tariffs on goods imported from nearly all countries. It took the markets, analysts, and investors almost five days to comprehend the ramifications of these new tariffs.
By week’s end, the implementation of the new tariffs was postponed by 90 days. Subsequently, on Friday, April 11, 2025, the administration decided that the new tariff rates would not apply to computers, smartphones, semiconductors, solar cells, flat panel TV displays, flash drives, and memory cards.
The Trump Tariffs
The Trump administration announced the rate of new tariffs to be levied on goods from various countries based on the rate at which US goods are taxed in those countries. China was most impacted by these reciprocal tariffs. While most countries did not impose retaliatory tariffs on US goods, China did, which led to another set of tariffs from the US. By the end of the week, President Trump amended the executive order of April 2, 2025, which addressed Reciprocal Tariffs. The amendment has suspended the newly proposed ad valorem duties on all countries and regions except Mainland China, Hong Kong, and Macau.
The new tariffs have the potential of bringing down WTO which may take the world towards the pre-GATT days. Analysts, experts,, economists, and seasoned investors have predicted that the new tariffs may impact US companies adversely and it may take the US towards recession.
The new tariff rates for goods applied to different countries are as follows:
- China: initially 34%, now increased to 145%
- Cambodia: 49%
- Vietnam: 46%
- Sri Lanka: 44%
- Bangladesh: 37%
- Thailand: 36%
- Indonesia: 32%
- Taiwan: 32%
- Pakistan: 29%
- India: 26%
- European Union: 20%
- Brazil: 10%
RBI reduces the repo rate
The Monetary Policy Committee (MPC) of the RBI decided on April 9, 2025, to reduce the repo rate by 25 basis points, bringing it down to 6 percent. The MPC also revised the GDP growth projection for FY26 to 6.5% from 6.7%. Additionally, the MPC projected that the rate of inflation would remain around 4% in FY25-26. The RBI Governor indicated that the RBI would introduce a draft framework on the securitization of stressed assets.
Provisional Numbers Reported by the Banks
Several banks have reported their provisional numbers for Q4FY25. Most of the banks have shown moderate results on a Year-on-Year basis. IndusInd Bank, which faced issues due to accounting errors of derivative losses, demonstrated a significant decrease in the CASA Ratio on a YoY basis.
IDFC First Bank
IDBI Bank
HDFC Bank
Bandhan Bank
Yes Bank
RBL Bank
South Indian Bank
Markets this week
Due to India’s economy not being heavily reliant on exports, analysts anticipate the Trump Tariffs will have a minimal effect. Certain analysts also proposed that India could see gains from the ongoing trade dispute between the US and China.
Top Weekly Gainers
Despite significant market volatility throughout the week, select stocks performed strongly. Consumption-oriented stocks, particularly in the FMCG sector, maintained a positive outlook. Even on days when broader market indices experienced sharp declines, investors and traders showed strong interest in FMCG stocks.
The top 5 gainers:
- Avanti Feeds
- Jyothy Labs
- Kaynes Technology
- Safari Industries
- Dixon Technologies
Top Weekly Losers
The Reserve Bank of India (RBI) released draft guidelines for gold loans during the week, aiming to strengthen the sector’s norms. Consequently, stocks of gold loan companies experienced a downturn in the market. Additionally, Trent’s release of provisional Q4FY25 and FY25 numbers led to a negative market reaction, causing a significant drop in its stock price.
The top five losers of the Week are:
- Muthoot Finance
- Trent
- Thermax
- Indraprastha Gas
- JSW Holdings
