The US has criticized India's financial industry policies, highlighting favourable treatment towards domestic firms like LIC and data storage requirements hampering foreign payment companies. The report also mentions barriers for foreign banks and insurers, unequal opportunities for foreign reinsurers, and lack of enforcement of market share limits for foreign digital payment firms.

Shares of Indian pharmaceutical companies surged on Thursday after the US exempted the sector from new trade tariffs. The Nifty Pharma index rose by 2.3%, with major gains for IPCA Laboratories, Lupin, Sun Pharmaceutical, and Cipla. Analysts see growth potential and recommend investing in pharma stocks.

The domestic market ended slightly lower due to weak global cues amid major news developments. Highlighted stocks include HDFC Bank, Mazagon Dock, Bajaj Finance, DMart, and UltraTech Cement, with significant updates on stake proposals, acquisitions, financial performance, and quarterly results influencing market movements.

After the US announced reciprocal tariffs on various countries including India, domestic equities showed limited reaction with the Nifty losing just 82 points. The market is now focusing on the RBI’s monetary policy set for April 9 and the upcoming fourth-quarter earnings season.

NSE's Nifty fell 82.25 points, or 0.35%, to close at 23,250.1. BSE's Sensex declined 322.08 points, or 0.4%, to end at 76,295.36. Both had fallen as much as almost 1% earlier in the day.

The Nifty IT index tumbled 4.2% - the biggest loser among sector indices. Shares of Persistent Systems plunged 10%, while Coforge dropped nearly 8%. TCS, Infosys, Wipro, Mphasis, LTIMindtree, and HCL Technologies declined between 3% and 4%.

The US reciprocal tariffs on India Inc will have a twofold impact, benefiting some Indian exporters compared to higher tariffs on Asian countries while potentially increasing dumping from affected nations. Key sectors like automobiles, auto ancillaries, and gems and jewellery may face mixed effects, including cost pressures and reduced competitiveness in the US market.

The S&P 500 was down 4.2% in afternoon trading, more than other major stock markets, and at its bottom in the morning was on track for its worst day since Covid struck in 2020. The Dow Jones Industrial Average was down 1,394 points, or 3.3%, as of 2:09 p.m. Eastern time, and the Nasdaq composite was 5.3% lower.

Banks in Mumbai are preparing for potential defaults from exporters heavily reliant on the US market due to new 27% tariffs. Lenders are reviewing their export loan books, focusing on impacted sectors like gems, jewellery, and textiles. Banks are also examining the tariff effects on competitors and RBI's upcoming policy review.

Bankers have requested the Reserve Bank of India to reinstate the daily overnight borrowing window as the primary cash management tool to ensure better liquidity and quicker transmission of rate cuts. The RBI is expected to announce changes to the liquidity framework next week, coinciding with an anticipated repo rate reduction.

The Reserve Bank of India has issued a letter of 'displeasure' to Bajaj Finance for failing to identify customer risks in its co-branded credit card business, prompting the NBFC to respond. A crucial role in co-branding agreements was highlighted by RBI, and customer complaints had surged, leading Bajaj Finance to halt new co-branded credit card sourcing with its banking partners.