Indian stocks weather US tariff turbulence as top gainers soar up to 20% on April 3

On April 3, 2025, the Indian stock market delivered a performance defined by contradictions. While the headline indices slipped under the weight of rising global trade frictions—most notably the imposition of steep US tariffs on Indian imports—a cohort of 20 stocks recorded double-digit percentage gains, defying broader market expectations. This divergence reflects the growing influence of sector-specific fundamentals, policy positioning, and shifting investor sentiment in response to changing global trade dynamics.

The overall sentiment was dragged by the United States’ announcement of a 26% tariff on Indian goods, part of a broader protectionist wave under President Donald Trump’s second term. The move cast a shadow over India‘s key export sectors, including electronics, engineering goods, and IT services, sparking a modest decline in benchmark indices. The BSE Sensex fell 0.42% to close at 76,295.36, while the Nifty 50 slipped 0.35% to 23,250.10, with several frontline technology and export-oriented names retreating.

However, despite this cloud of uncertainty, individual investors and institutional buyers sought opportunities in resilient sectors—especially pharmaceuticals, textiles, and selected manufacturing plays—which helped these 20 top-performing stocks post gains between 10% and 20% during the trading session.

Why did Vardhman Textiles and Maral Overseas top the gainers list?

Textile companies saw a notable uptick in investor interest, with Vardhman Textiles Limited leading the gainers. The stock surged 20% to ₹482.40, buoyed by strong demand and potential export tailwinds. Vardhman’s extensive cotton yarn production and integrated manufacturing capabilities position it advantageously amid shifting global sourcing trends, especially as more Western buyers look to diversify away from Chinese suppliers.

Also rallying was Maral Overseas Limited, which similarly posted a 19.99% gain to ₹74.98. A vertically integrated player in knitted fabrics and garments, Maral has benefited from increasing interest in Indian textiles, particularly from buyers in the US and EU who are seeking alternative sourcing destinations. Its operational strengths, including backward integration and a diversified product portfolio, have helped drive renewed confidence.

The surge in textile stocks also mirrors broader optimism around India’s rising share in global textile and apparel trade. Recent government initiatives to expand the Production Linked Incentive (PLI) scheme in the sector, as well as softening input costs, may have contributed to the bullish sentiment.

How did pharmaceutical stocks respond to tariff exemptions?

Among the clearest beneficiaries of the day’s market divergence were pharmaceutical companies. In a crucial policy carve-out, Indian pharmaceutical exports were exempted from the US tariffs, which led to a sharp 5% rally in the Nifty Pharma index—its biggest single-day gain in over four years.

Bal Pharma Limited soared 19.99% to ₹108.34, riding on optimism around its active pharmaceutical ingredient (API) portfolio and a strong domestic presence. The company is seen as a beneficiary of increasing demand for low-cost generics, especially from emerging markets and health systems seeking cost-effective alternatives.

Similarly, Anuh Pharma climbed 12.75% to ₹185.00, reflecting its API manufacturing scale and reliable compliance record. SMS Lifesciences India Limited, a Hyderabad-based pharma intermediate company, closed the day 10% higher at ₹1,203.75. Analysts believe these stocks are riding a multi-quarter structural tailwind, supported by both tariff immunity and a renewed global focus on healthcare resilience post-COVID.

India’s pharmaceutical industry has historically been a key supplier of affordable generic medicines to the United States, accounting for nearly 40% of the US generic drug market by volume. The US tariff exemption thus underscores the strategic interdependence between the two nations in the healthcare domain, even amid broader protectionist policies.

Which smaller and micro-cap stocks saw high trading activity?

Several low-priced and micro-cap stocks also featured prominently among the top gainers. Orchasp Limited, a software and IT services firm, rose 19.81% to ₹3.75, suggesting speculative momentum rather than fundamentals. Its sharp move came on volumes exceeding 37 lakh shares.

Akme Fintrade (India) Limited, a non-banking financial company, advanced 16.52% to ₹80.56. The gain followed a broader market belief that NBFCs could benefit from increased lending demand and upcoming fiscal stimulus for the rural economy.

Kanani Industries, which operates in the diamond and jewellery segment, gained 14.54% to ₹2.60. While the sector is directly exposed to US trade risks, some traders speculate the stock’s surge could be driven by bargain hunting or expectations of government support.

Other micro and small-cap stocks on the list included KHANDSE, Sanginita Chemicals, and Lagnam Spintex, all of which posted gains between 10% and 14%, reflecting a combination of low base effect, retail participation, and selective fund flows into high-beta counters.

What other sectors showed strength on April 3?

The rally wasn’t limited to pharma and textiles. Select names in chemicals, infrastructure, and engineering also found favour.

DCM Nouvelle, which operates across engineering and textiles, rose 14.29% to ₹176.00, likely supported by expectations of higher capex allocations in the upcoming Union Budget. Tirumalai Chemicals advanced 10.66% to ₹267.20, while Valiant Organics, another specialty chemicals firm, added 10.15% to ₹370.00.

Indian Hume Pipe, engaged in water infrastructure projects, closed 10.31% higher at ₹412.00, with speculation around public sector order inflows lifting sentiment. Engineering-focused Gujarat Apollo Industries also posted a strong 10% gain to ₹351.55, reflecting optimism in capital goods and road-building sectors.

These moves reflect a strategic shift among investors toward domestic capex-linked plays, especially those less exposed to external volatility and US trade policy.

What broader economic themes influenced market behaviour?

The market’s mixed performance on April 3 was closely tied to macroeconomic uncertainties. The 26% US tariff on Indian imports, though milder than those imposed on China (32%) and Vietnam (28%), cast a pall over several Indian export-dependent sectors. Analysts estimate that over $23 billion worth of Indian exports could be affected, including machinery, auto components, electronics, and select IT services.

Investor confidence in the IT sector took a hit, with the Nifty IT index dropping 4.2%, its steepest fall in two years. Fears of a potential US slowdown, combined with the tariff impact, led to sharp declines in Infosys, Tata Consultancy Services, and HCL Technologies, all of which fell more than 3%.

Amid this backdrop, institutional investors shifted their focus to defensive sectors, including pharmaceuticals, FMCG, and select consumer durables. Meanwhile, foreign portfolio inflows remained muted as investors evaluated the trajectory of US-India trade relations and awaited the Reserve Bank of India’s monetary policy decision expected next week.

Are these gains sustainable, or just short-term reactions?

While the top 20 gainers on April 3 delivered impressive returns, the sustainability of these rallies depends on multiple factors—ranging from global trade resolution to domestic policy clarity. Sector-specific tailwinds, such as tariff exemptions for pharma or increased demand for Indian textiles, provide a solid base for medium-term optimism. However, speculative moves in microcaps and momentum-driven names could unwind swiftly in the absence of fundamental support.

With India’s macro fundamentals still relatively strong and policymakers expected to respond with targeted support for affected sectors, the broader outlook remains constructive. However, volatility is expected to persist in the short term, especially as global investors adjust to a more fragmented and protectionist trade environment.