Business News

Stock markets snapped the seven-day winning run on Wednesday with benchmark Sensex tanking 728 points due to profit-taking in banking and IT shares ahead of monthly expiry of derivatives contracts.Stocks that were in focus include names like Amara Raja, which fell 2.01% and Vodafone Idea, which declined 1.7% and Siemens, whose shares declined 1.7% on Wednesday.Here's what Riyank Arora, Technical Analyst at Mehta Equities, recommends investors should do with these stocks when the market resumes trading today.Amara Raja (CMP: 1039, Sideways)The stock is trading in a consolidation phase with no clear trend. RSI at 53 indicates neutral momentum, suggesting range-bound movement. Key support is around 1000, while resistance is near 1060. A breakout above 1060 could trigger fresh buying interest.Vodafone Idea (CMP: 7.06, Sideways)The stock remains under pressure with weak momentum as RSI is below 40. Sideways movement suggests accumulation, with key support at 6.80. A breakout above 7.50 may lead to a short-term upmove. Overall, wait for a trend confirmation before taking fresh positions.Siemens (CMP: 5415, Bullish Strong)The stock is in a strong uptrend with consistent bullish momentum. RSI at 59 indicates room for further upside with strong buying interest. Immediate resistance is at 5500, and a breakout can push towards 5650. Any dip towards 5300-5350 can be a buying opportunity.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

US President Donald Trump on Wednesday announced a 25% tariff on auto imports, a move the White House claims will boost domestic manufacturing but could strain automakers reliant on global supply chains. "This will continue to spur growth. We'll effectively be charging a 25% tariff," Trump told reporters.Expected to generate $100 billion annually, the tariffs could complicate operations even for US automakers, as many source parts globally. The tax hike, starting in April, may lead to higher costs and lower sales. However, Trump insists the measure will encourage more factories in the US and end what he calls a "ridiculous" supply chain stretching across the US, Canada, and Mexico.Emphasizing his commitment, Trump stated, "This is permanent."Also Read: What's in Trump's new 25% tariffs on US auto imports?Following the announcement, General Motors shares dropped about 3%, while Ford saw a slight gain. Stellantis, the parent company of Jeep and Chrysler, fell nearly 3.6%.Japan’s top carmakers also took a hit—Toyota slid 3.7%, Nissan 3.2%, and Honda 3.1%, with similar declines for Mitsubishi and Hyundai. The move threatens Japan’s auto sector, a key employer, and its $142 billion exports to the US. Trump's defining policyTrump has long said that tariffs against auto imports would be a defining policy of his presidency, betting that the costs created by the taxes would cause more production to relocate to the United States while helping narrow the budget deficit. But US and foreign automakers have plants around the world to accommodate global sales while maintaining competitive prices -- and it could take years for companies to design, build and open the new factories that Trump is promising.The tariffs on autos would start being collected on April 3, Trump said. If the taxes are fully passed onto consumers, the average auto price on an imported vehicle could jump by USD 12,500, a sum that could feed into overall inflation. Trump was voted back into the White House last year because voters believed he could bring down prices. Foreign leaders on Trump tariffsForeign leaders were quick to criticise the tariffs, a sign that Trump could be intensifying a broader trade war that could damage growth worldwide. "This is a very direct attack. We will defend our workers. We will defend our companies. We will defend our country," Canadian Prime Minister Mark Carney said. In Brussels, European Commission President Ursula von der Leyen expressed regret at the US decision to target auto exports from Europe and vowed that the bloc would protect consumers and businesses. "Tariffs are taxes - bad for businesses, worse for consumers equally in the U.S. and the European Union," she said in a statement, adding that the EU's executive branch would assess the impact of the move, as well as other US tariffs planned for coming days. A new incentive to help car buyersAs Trump announced the new tariffs, he indicated that he would like to provide a new incentive to help car buyers by allowing them to deduct from their federal income taxes the interest paid on auto loans, so long as their vehicles were made in America. That deduction would eat into some of the revenues that could be generated by the tariffs. The new tariffs would apply to both finished autos and parts used in the vehicles, according to a White House official who spoke on condition of anonymity to discuss the taxes on a call with reporters. The tariffs would be on top of any existing taxes and were legally based on a 2019 Commerce Department investigation that occurred during Trump's first term on national security grounds. For autos and parts under the USMCA trade pact applying to the United States, Mexico and Canada, the 25 per cent tariffs would only apply to non-US content. The administration is reasoning that there is excess capacity at US automakers that will enable them to ramp up production to avoid the tariffs by manufacturing more domestically, with the official noting that automakers have known since the Trump campaign that tariffs were coming. The auto tariffs are part of a broader reshaping of global relations by Trump, who plans to impose what he calls "reciprocal" taxes on April 2 that would match the tariffs, sales taxes charged by other nations. Trump targets ChinaTrump has already imposed a 20% import tax on all Chinese goods due to the country's role in fentanyl production.He also slapped 25% tariffs on Mexico and Canada, with a lower 10% tax on Canadian energy products. However, some of these tariffs, including those on autos, were temporarily suspended after automakers pushed back. Trump granted a 30-day reprieve, which is set to expire in April.Additionally, he has enforced a 25% tariff on all steel and aluminum imports, revoking earlier exemptions from his 2018 metal tariffs.Further duties are planned on computer chips, pharmaceutical drugs, lumber, and copper.With inputs from Associated Press

Mumbai: Bank of America (BofA) Securities downgraded its ratings on Zomato and Swiggy, and cut their target prices citing expectations of rising losses in the quick commerce business over the next 12-15 months and slowing growth in margins in the food delivery unit.The brokerage has downgraded Zomato from 'Buy' to 'Neutral', and cut its price target to ₹250 per share, and Swiggy to 'Underperform' from 'Buy' with price target slashed to ₹325. Shares of Zomato ended 2.5% lower at ₹203.3 on Wednesday, and Swiggy closed at ₹323.9, down 3.9%.BofA's price targets imply 23% and 0.4% upsides for Zomato and Swiggy, respectively, from Wednesday's closing level. "Between Zomato and Swiggy, we find Zomato better placed with scale and first-mover advantage in quick commerce, leading to better unit economics, higher margins and a stronger cash position (hence, Neutral). Given Swiggy's higher losses in quick commerce, any prolonged price war would delay breakeven (hence, Underperform)," it said.Shares of Zomato have declined 26%, and Swiggy is down 40.2% this year.

As many as 637 projects, including those under the Bharatmala Pariyojana Scheme, have faced delays primarily due to factors like land acquisition issues and financial difficulties faced by contractors, Parliament was informed Wednesday. Besides force majeure events, scarcity of construction materials, etc have also caused delays in the projects, Union Minister for Road, Transport and Highways Nitin Gadkari said in a reply to Rajya Sabha. "The implementation of 637 projects, including those under the Bharatmala Pariyojana Scheme, has faced delays...," the Minister said. To overcome these challenges and expedite project execution, the government has undertaken various initiatives, Gadkari said.. These include streamlining and expediting land acquisition process, revamping Parivesh Portal to facilitate faster forest and environmental clearances, enabling online approval of General Arrangement Drawing (GAD) of Road Over Bridge/Road Under Bridge (ROB/RUB) from the Railways, and conducting review meetings at various levels with all stakeholders, including state governments, he said. On the financial implication, Gadkari said it does not arise in every delayed project. The minister said if delay is not attributable to the contractor, price escalation is paid as per contract conditions, which may or may not result in additional cost, depending upon final value of price escalation determined on actual completion of the project. Further, if delay is attributable to the contractor, damages are imposed, and there is no additional cost due to delay. The government is taking all necessary steps for timely completion of such delayed projects, he said.