Auto Stocks Skid: Trump's Tariffs Shake the Market

Auto stocks experienced a significant decline as President Donald Trump announced a 25% tariff on auto imports. Tata Motors dropped over 5.50%. The BSE auto index reflected the pressure, closing 0.99% lower. Key investors shared mixed reactions, with optimism in sectors outside the auto industry.

Auto stocks took a downturn on Thursday, with Tata Motors suffering a decline exceeding 5.50%, triggered by President Donald Trump's announcement implementing a 25% tariff on auto imports starting April.

Tata Motors stock closed at Rs 668.60 on the BSE after dipping as low as Rs 661.35 during the day. Compounding the sector's woes, Ashok Leyland dropped 2.77%, while Eicher Motors, Mahindra & Mahindra, and Apollo Tyres also posted declines.

Key automotive parts makers weren't immune, as firms like Sona BLW Precision and Samvardhana Motherson experienced notable intraday losses. Market strategists indicate that the tariffs could significantly affect Tata Motors due to its JLR exports to the U.S. Meanwhile, the Sensex managed to climb, driven by gains in banks and industries outside the auto sector.