Why TECIL Chemical and Siemens surged as Indian markets reeled from Trump’s tariff blow

On April 7, 2025, Indian equity markets were rattled by global trade developments, with benchmark indices falling steeply as investors reacted to the latest round of tariffs announced by the United States. The Sensex plunged nearly 2,200 points, or 2.95%, to close at 73,137.90, while the Nifty 50 shed 3.24% to settle at 22,161.10. This marked one of the sharpest single-day drops for Indian indices in the past 10 months, and the rout extended across sectors including metal, realty, and export-focused businesses.

The immediate catalyst for the panic was U.S. President Donald Trump’s new trade policy, which included a 26% tariff on Indian imports as part of a broader strategy targeting Asian countries. Although India’s share of total U.S. imports is relatively modest compared to that of China or Vietnam, the announcement sent shockwaves through global markets and triggered a broad sell-off in emerging market equities. Concerns about a renewed trade war and the resulting drag on global GDP created an environment of heightened volatility, prompting both institutional and retail investors to cut exposure to risk assets.

Despite the widespread downturn, a group of Indian stocks stood out with strong gains, highlighting investor focus on specific sectors, resilience in domestic demand-driven companies, and stock-specific triggers. Among them, TECIL Chemical and Hydro Power Limited and Siemens Limited were the top performers, each delivering significant upside on an otherwise gloomy day.

Why did TECIL Chemical and Siemens rise despite market-wide losses?

TECIL Chemical and Hydro Power Limited emerged as the day’s strongest gainer, closing 19.99% higher at ₹30.43. The stock hit its upper circuit limit, generating buzz among retail investors and speculative traders alike. Although there was no regulatory filing or corporate announcement to justify the sharp move, the surge was likely fueled by momentum buying in low-float stocks and anticipation of potential restructuring or promoter-driven developments.

Siemens Limited’s 15.59% gain, ending the day at ₹2,832.00, was particularly notable given the company’s large-cap status and its industrial focus. Analysts pointed to positive sentiment surrounding India’s infrastructure pipeline and the government’s long-term capital expenditure goals. Siemens has long been viewed as a proxy for India’s investment in energy automation, rail electrification, and smart city projects. Its rally on a weak market day indicated renewed investor confidence in capital goods stocks that stand to benefit from domestic infrastructure resilience even amid global headwinds.

In addition, Siemens’ recent focus on expanding its digital industries and software portfolio, aligned with global shifts toward automation and industrial AI, has attracted institutional buying in anticipation of stronger earnings visibility. The stock’s strong trading volume—more than 2.7 million shares—underscored the conviction behind the move.

Which other stocks gained and what drove their performance?

Beyond TECIL and Siemens, several mid-cap and small-cap companies delivered notable performances, largely driven by sectoral tailwinds or retail trading patterns. Chemfab Alkalis Limited rose 10.25% to ₹781.00, continuing its recent upward trajectory on expectations of strong chemical demand and improved pricing power. The specialty chemicals segment has remained one of the few Indian export verticals to benefit from global supply chain realignments, especially as companies seek China-plus-one sourcing strategies.

Secur Credentials Limited, known as SECURKLOUD, gained 9.96% to ₹22.86, with traders attributing the rise to speculative interest following a long period of underperformance. Similarly, Oswal Seeds and Chemicals climbed 9.96% to ₹13.80, reflecting renewed optimism around agri-input companies amid predictions of normal monsoons this year.

Shares of NK Industries also posted a 9.96% increase, ending at ₹68.75. Though relatively illiquid, the company’s exposure to castor oil exports and derivatives plays into a niche but steadily growing segment with international demand. Meanwhile, AKSH Optifibre, a manufacturer of optical fibre cables, gained 6.92% to close at ₹10.20. The uptick in AKSH shares followed government commitments to expanding BharatNet connectivity in semi-urban areas.

Greenpanel Industries, a well-known player in the MDF and plywood market, gained 6.86% to ₹232.80. Despite market volatility, housing and furniture-related businesses have shown resilience, aided by steady demand in Tier 2 and Tier 3 cities. Analysts expect that companies with strong dealer networks and product diversity, like Greenpanel, will benefit from continued urbanisation and housing investments.

Valiant Laboratories added 6.12% to close at ₹94.53. With the pharmaceutical sector expected to remain relatively insulated from global tariff pressures due to diversified export routes and domestic demand, investor interest in API-focused companies has continued.

How did smaller and speculative counters perform?

Among micro- and small-cap gainers, stocks such as GTEC Jainx Education (up 5.19%), NACL Industries (up 5.00%), Spacenet Enterprises (up 5.00%), and Swadeshi Polytex (up 4.99%) attracted day-trading activity. These movements appeared less driven by fundamentals and more by momentum-based strategies.

Sadhna Nitro Chem gained 4.97%, supported by its presence in aromatic nitro compounds—a segment with applications across dyes and agrochemicals. Tirupati Hotels & Projects advanced 4.96% despite minimal operational updates, highlighting the return of speculative trading interest in sub-₹2 counters. Similarly, Supreme Engineering, JHS Svendgaard Laboratories, Shyam Telecom, and Noida Toll Bridge Company all rose between 4.73% and 4.95%, driven by low valuations and intraday retail flows.

While such gains often lack sustainability, they reflect short-term appetite among traders to capitalise on sharp price movements in low-priced stocks, especially on volatile days when index-heavy stocks are under pressure.

What does this tell us about investor strategy during market uncertainty?

The contrast between broader index declines and gains in select stocks reveals a nuanced investor strategy: while exiting heavily exposed sectors like metals, real estate, and large-cap exporters, investors are pivoting toward domestic-oriented, less export-reliant businesses. This rotation into capital goods, chemicals, and infrastructure-aligned counters shows confidence in India’s internal growth story despite external shocks.

The sharp decline in the Nifty Metal index, down 6.75%, and the Nifty Realty index, down 5.6%, underscores the fragility of sectors linked to global trade or cyclical demand. Investors continue to question earnings sustainability for companies facing elevated input costs, regulatory uncertainty, or international market risk.

Yet, the strength in names like Siemens, Greenpanel, and Chemfab Alkalis suggests that companies tied to India’s capex cycle, rural consumption, and infrastructure development still hold appeal. These stocks appear well-positioned to weather global volatility through domestic demand buffers and government spending-led growth.

What’s next for markets and policymaking?

With markets reeling from the Trump tariff announcement, attention now turns to how the Reserve Bank of India will respond in its upcoming monetary policy meeting. There is growing anticipation of a possible rate cut or dovish commentary, especially if inflation remains contained and global risks intensify. A softer monetary stance may offer short-term relief to equity markets, particularly sectors like real estate and capital-intensive industries.

Global developments will also play a pivotal role. Should trade tensions escalate further or prompt retaliatory measures, Indian markets could face extended volatility. However, analysts maintain that India’s diversified economy, low external debt levels, and large domestic consumption base offer structural strength. Sectors such as consumer goods, infrastructure, and digital services are likely to benefit from policy support and long-term secular trends.

As investors digest the implications of global trade shifts, stock-specific stories—like those of TECIL Chemical, Siemens, and Chemfab—will continue to command attention. The divergence in performance between broader indices and selective outperformers reinforces the importance of fundamentals, sectoral positioning, and investor adaptability in navigating uncertain markets.