MUMBAI: The benchmark stock indices, Sensex and Nifty, dropped nearly 1% on Friday, marking their sixth consecutive decline due to heavy selling in pharma and IT shares. This downtrend followed US President Donald Trump’s announcement imposing a 100% tariff on pharmaceutical drugs starting next month.
The 30-share BSE Sensex closed 733.22 points lower, or 0.90%, settling at a three-week low of 80,426.46. At one point during the session, it nosedived over 827 points to 80,332.41.
Meanwhile, the 50-share NSE Nifty tumbled 236.15 points, or 0.95%, reaching an over three-week low of 24,654.70. The index has been in decline since September 19, with a reduction exceeding 3% over the past six sessions. The Sensex has fallen by 2,587.50 points, or 3.16%, during the same period.
In terms of market sectors, the BSE Healthcare index dropped by 2.14% as most pharma shares experienced significant declines. Wockhardt shares fell sharply, plummeting 9.4% amid concerns over future profitability due to the tariff announcement.
Trump’s announcement on his preferred social media platform, Truth Social, clearly stated, “Starting October 1st, 2025, we will impose a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company is building their Pharmaceutical Manufacturing Plant in America.” He clarified that the definition of “building” includes both “breaking ground” or “under construction,” ensuring that no tariffs will be levied if construction has initiated.
Among the notable laggards in the Sensex, Mahindra & Mahindra, Tata Steel, Sun Pharma, and Infosys significantly drove down the index. On the other hand, stocks like Larsen & Toubro, Tata Motors, ITC, and Reliance Industries saw slight upticks, contrasting the overall negative trend.
“Indian equities faced a dramatic decline on Friday following the US’s unexpected tariff announcement. Investor sentiment took a hit from the recent hike in H-1B visa fees, causing panic selling in IT stocks,” stated Ponmudi R, CEO of Enrich Money, an online trading and wealth management firm. He further emphasized that both IT and healthcare sectors significantly affected the broader indices as investors reassessed earnings forecasts and export growth potential amidst increasing tariffs.
Across Asian markets, indices such as South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng faced significant drops, reflecting the widespread concern over the new tariffs.
On the European front, equity markets displayed a contrasting trend, trading positively as US markets closed lower on Thursday, echoing investor discomfort. Additionally, foreign institutional investors (FIIs) offloaded equities worth Rs 4,995.42 crore on Thursday alone, exacerbating the sell-off.
The global oil benchmark, Brent crude, experienced a slight dip of 0.27% to $69.23 a barrel, hinting at potential volatility in energy prices due to global market concerns following the tariff news.
On Thursday, the Sensex had already dropped 555.95 points or 0.68%, closing at 81,159.68, while the Nifty fell by 166.05 points or 0.66% to 24,890.85. These figures underline the challenging environment that both indices face with increasing global tensions and trade barriers.
