Bloodbath on Dalal Street! 20 Indian stocks crash amid Trump tariffs, RBI rate cut and pharma panic

Indian equities witnessed a pronounced downturn on April 9, 2025, as a cascade of global and domestic triggers coalesced to drive selling pressure across sectors. While benchmark indices like the BSE Sensex and NSE Nifty 50 slipped 0.51% and 0.61% respectively, the steepest losses were concentrated among mid-cap and export-linked stocks. From healthcare and IT to specialty chemicals and logistics, investor sentiment took a hit amid growing concerns over international trade tensions, domestic economic uncertainty, and sector-specific earnings visibility.

The immediate catalyst for the day’s turbulence was geopolitical. U.S. President Donald Trump’s latest trade maneuver—announcing a 125% tariff on Chinese imports while pausing duties for most other countries—sparked volatility across global markets. Though U.S. equities reacted positively to the limited reprieve, Indian investors interpreted the move as a harbinger of global supply chain disruption, especially for industries heavily reliant on Chinese inputs and American exports.

This came just hours before the Reserve Bank of India announced a 25 basis point cut in the repo rate, bringing it down to 6.00%. While such monetary easing typically supports equities, the central bank’s shift from a “neutral” to “accommodative” stance was interpreted by many market participants as a signal of deeper concern about India’s slowing economic momentum.

Which Indian stocks declined the most, and what sectors were hit hardest?

The worst-performing stock of the day was GTEC Jainx, which fell 10.02% to ₹28.30 after starting at ₹31.45. The sharp drop came despite relatively low trading volume, suggesting speculative selling in a small-cap counter without strong institutional backing. Close behind was Blue Jet Healthcare, plunging 10% to ₹625.10. The company, a key exporter of complex generic pharmaceuticals, became emblematic of broader market anxieties surrounding healthcare exports amid changing U.S. trade dynamics.

Hilton Metal Forging, down 9.95%, and Themis Medicare, down 9.72%, reflected sector-wide concerns in metals and pharmaceuticals, respectively. Themis, a player in contract manufacturing and active pharmaceutical ingredients (APIs), was particularly vulnerable given the increasing scrutiny on China’s raw material costs and the potential for retaliatory policy actions. The pharma space as a whole was rattled on April 9, with top listed peers like Lupin and Wockhardt losing 3–5% amid speculation that heightened U.S.-China tensions could alter pricing benchmarks in regulated markets.

Among the notable decliners was CarTrade Tech, falling 8.62% to ₹1,393.00. The auto-focused digital marketplace has been under pressure in recent months amid slowing retail vehicle sales, rising interest rates on auto loans, and muted consumer demand in urban areas. Although the RBI rate cut could offer some respite, the sentiment was overshadowed by weak FY2025 delivery projections for auto and mobility platforms.

Sharda Cropchem fell 8.96% to ₹458.50, aligning with weakness across agrochemical and crop protection businesses. With erratic pre-monsoon patterns and expectations of moderate rainfall, agricultural input companies are bracing for a volatile Kharif season. Exporters in this space are also grappling with shipping delays and input cost inflation, further weakening investor confidence.

In the broader healthcare segment, Caplin Point Laboratories dropped 7.96% to ₹1,715.00, continuing its recent underperformance. Although the company has previously enjoyed high-margin Latin American sales, the emerging market currency headwinds and rising freight charges have dented optimism. Similarly, Marksans Pharma fell 7.20% and Bal Pharma dropped 7.50%, reinforcing that investor concerns extended across small and mid-sized drugmakers.

The logistics and financial sectors were not spared. IndoStar Capital Finance slid 6.89%, and Ritco Logistics lost 6.95% amid liquidity stress in NBFCs and lower freight volumes. Rising fuel prices, muted rural demand, and continued pressure on receivables have further complicated the outlook for these sectors.

Other stocks facing steep declines included SGLTL, Gujarat Ambuja Exports, Nagreeeka Capital, Silly Monks Entertainment, Kanani Industries, Goldiam International, Bharat Rasayan, Priti International, and Quess Corp—each losing between 6.8% and 9.2%.

How are global and domestic macroeconomic signals influencing market performance?

The April 9 selloff underscored how intertwined India’s capital markets have become with global macroeconomic shifts. The Trump administration’s decision to drastically increase tariffs on Chinese goods introduces significant uncertainty into global trade routes, especially for countries like India that act as intermediaries in extended supply chains.

For the Indian pharmaceutical industry, which relies on Chinese raw material imports for nearly 70% of its APIs, the cost structure is now at risk. Moreover, companies that export to the United States could face margin compression if tariff-driven cost hikes are not absorbed by American buyers or passed on to end consumers.

Domestically, the RBI’s rate cut is an attempt to stay ahead of growth deterioration. However, its shift to an accommodative stance sent a clear signal: the central bank anticipates a tougher economic environment in the quarters ahead. Weak manufacturing output, subdued rural spending, and sluggish private capex have already started weighing on quarterly GDP projections.

Investor positioning ahead of general elections also adds to market fragility. Concerns about political continuity, fiscal deficit management, and subsidy outflows have prompted portfolio rebalancing away from rate-sensitive and public sector-heavy sectors.

What is the outlook for Indian stocks amid rising volatility and trade policy shifts?

The next few weeks are likely to be volatile as global policy unpredictability meets domestic political cycles. Export-heavy sectors, particularly pharmaceuticals, IT, and specialty chemicals, are expected to see cautious institutional positioning until the contours of U.S.-China trade retaliations become clearer.

The broader market will also closely monitor the pace of monetary transmission following the RBI’s rate cut. If credit flow to MSMEs and rural-focused NBFCs remains sluggish, hopes of an economic revival could be delayed, keeping pressure on small-cap indices.

Companies like Wipro, which fell 4.29% on April 9, illustrate how market underperformance may continue even among well-established firms. The IT giant’s volume spikes—871,000 shares traded versus a 50-day average of 502,000—indicate growing investor anxiety over forward guidance. Meanwhile, Dr. Reddy’s Laboratories, which declined 1.21%, still outperformed smaller pharma names, suggesting a flight to quality within the sector.

Historically, Indian markets have shown resilience after global trade disruptions, but the current cycle is complicated by high equity valuations, limited earnings growth, and persistent geopolitical risk. The ability of policymakers to manage inflation, stimulate investment, and maintain fiscal prudence will determine whether this downturn is short-lived or prolonged.

As April progresses, Q4 FY2025 earnings announcements will offer further clarity on corporate health, particularly in export-linked and discretionary consumption sectors. Investors should be prepared for more stock-specific action and reduced correlation between index movement and individual scrips.

The steep selloff across 20 Indian stocks on April 9 was more than a day of poor performance—it was a reflection of shifting investor sentiment amid a confluence of global uncertainty and domestic fragility. With tariff wars, rate cuts, and sectoral disruption all playing a role, the message from Dalal Street is clear: volatility is back, and investors need to brace for an uneven road ahead.