Shares of several export-oriented Indian companies fell sharply—by as much as 13%—amid market concerns over reports suggesting the possibility of an extremely high US tariff of up to 500% on certain Indian exports.
Stocks such as Gokaldas Exports, Avanti Feeds, and other companies with heavy exposure to the US market were among the worst hit. Investors reacted nervously because a large portion of these firms’ revenues comes from exports to the United States, making them particularly vulnerable to any adverse trade action.
Why the stocks fell
- High US dependence: These companies generate a significant share of their sales from American buyers.
- Tariff risk: Any steep increase in US import duties could hurt demand, margins, and profitability.
- Policy uncertainty: Lack of clarity on US trade policy toward India has increased volatility in export-heavy stocks.
Market view
Analysts say the sharp sell-off reflects risk aversion rather than confirmed policy action. However, until there is clearer communication from US authorities or progress on an India–US trade understanding, export-oriented stocks may remain under pressure.
Investors are now closely tracking diplomatic signals, trade negotiations, and official statements for confirmation on whether such tariffs are actually under consideration or merely speculative.
