India, July 31 -- Indian equities could extend their decline on Thursday after US President Donald Trump on Wednesday slapped a 25% tariff on imports from India, along with an unspecified penalty.

Stocks of textiles, pharmaceuticals, and automotive component companies-key Indian exporters-are likely to be hurt the most, said experts. However, they also expect the fall to be short-lived on hopes of a trade deal eventually being struck. India and the US are negotiating a bilateral trade agreement and the next set of talks are scheduled in August.

The benchmark Nifty, which fell 3.1% over the past four weeks to 24,837 last Friday, recovered marginally to 24,855.05 on Wednesday. The tariff announcement came after the markets closed and coul...