What is the attitude of brokerage firms on tariffs – What is the attitude of brokege firms on tarifs

US President Donald Trump on Wednesday imposed a 27 percent counter -duty duty on India. He has imposed even more fees on many other countries. These all -round charges are expected to change global trends and many domestic areas are expected to be adversely affected from IT to automobiles. Opinion of major brokers about this:

Nomura
We believe that this is a clear negative developments for Asian shares and we do not see the market as a ‘clearing event’ move, which some market traders were expecting. The impact of tariffs on the US inflation and development scenario will be felt over the next few weeks and months. We believe that investors will closely look at the major American figures such as payroll/ employment, inflation and consumer expenses/ retail sales to assess the health of the American economy. Any weakness in data will increase market concerns about recession/inflation in the US, which will usually affect the risk perception, including Asian shares.

HSBC
The 26 percent fee imposed on India may reduce the growth rate by up to 50 basis points this year. But the good thing is that pharmaceuticals, (which is the major export of India to America), was given a large extent from the charges, otherwise it could have more effect. We are seeing that India is currently in the process of interacting the first phase of FTA with the US and can give concessions such as buying more American oil and defense goods, as well as reduced tariffs on agricultural products and electric vehicles.

Macwearry
Our primary estimate is that if 26 percent of tariffs were applied to all Indian products as suggested by the White House, it could have been largely negative. This is quite worse than our estimate. According to our global strategist, it seems that the effective tariffs of America are expected to increase by about 20–25 per cent even after the conversation (compared to about 3 percent in 2023). This is much worse than the preview of 2025 (about 8 percent) by our strategist. India is also in the process of negotiating bilateral trade agreement (BTA) with the US. So we have to look closely how the final solution to the tariff is found.

Kotak Institutional
More than estimates, the investment environment can be more cautious than counter -counter -duty and global growth and increasing uncertainty regarding the income of companies. We have been arguing for a long price of shares and low multiple for a long time. In this we factor an increase in global geopolitical and comprehensive economic uncertainty and see the field-specific and company-specific disruption risk. The high evaluation of the Indian market and most areas and shares suggests that the market has ignored potential risks to a great extent.

Some analysts believe positive-

Jefferies
Flawing declarations have come as relief as it will not have any bad effect on large exporting areas like IT service, pharma and auto. In addition, 26 percent of tariffs on India look justified compared to negative. The main concerns are about the weak American economic scenario, which is negative for IT services and other exporters. We would like to shop on the fall, especially on pharma.

Morgan Stanley
We are looking at the risk of falling 30–60 basis points in our growth estimate of 6.5 percent for FY 2026. Monetary policy will remain helpful for growth. We expect a change in stance in April policy and deduct the rate of 25 basis points. In view of negative risk for increase, we are looking at the risk of more softening cycles in rates, including an additional rate deduction of 50–75 basis points (vs 75 basis points rate deduction) as RBI will need to support domestic demand.

First Published – April 3, 2025 | 10:58 PM IST

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