6 days Ago By Moneycontrol
Mid- and small-cap indices tumbled up to 2 percent on Wednesday amid across-the-board selling, as the reciprocal tariffs announced by US President Donald Trump and the retaliatory levies announced by China triggered concerns of a deepening global trade war. The sell-off came after the United States implemented new reciprocal tariffs on imports from nearly 60 countries, including a steep 104 percent duty on Chinese goods. The tariffs, which took effect today, has sparked fears of retaliatory action by trading partners and rattled global markets.
The broader market mirrored the sharp fall in benchmark indices, with investors offloading positions across sectors. The Nifty Smallcap index declined 1.87 percent, snapping Tuesday's gains of over 2 percent.
BLS International Services, Amber Enterprises, IIFL Finance , Piramal Pharma and Anant Raj were among the worst hit, dropping up to 5 percent. The Nifty Midcap index also came under pressure, falling 1.8 percent after a 2.
11 per cent rise in the previous session. Muthoot Finance , Biocon, The Phoenix Mills, Coforge and Glenmark Pharmaceuticals were the key laggards, losing up to 10 percent. Adding to investor concerns, the Reserve Bank of India, in its first bi-monthly policy statement of FY26, flagged risks to India’s growth from the US tariff actions.
RBI Governor Sanjay Malhotra said the fresh 26 percent duty on Indian goods imposed by the US could shave off 20–40 basis points from India’s GDP growth forecast for FY26, potentially lowering it to around 6.1 percent from the earlier projection of 6.7 per cent.
Gold loan financing stocks came under additional pressure after the RBI said it would soon release comprehensive guidelines on gold loans. Shares of Muthoot Finance and IIFL Finance ended lower following the announcement. Pharma stocks also bore the brunt after President Trump hinted at imposing tariffs on pharmaceutical imports in the coming weeks.
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