MUMBAI: The benchmark stock indices Sensex and Nifty saw a sharp decline of nearly 1% on Friday, marking their sixth consecutive day of losses. This significant downturn occurred amid heavy selling in pharmaceutical and IT shares, ignited by US President Donald Trump’s announcement of a 100% tariff on imported drugs starting next month.
The 30-share BSE Sensex dropped by 733.22 points or 0.90% to close at a three-week low of 80,426.46. At its lowest point during the day, it fell 827.27 points or 1% to touch 80,332.41, reflecting a troubling trend for investors.
Speaking of the 50-share NSE Nifty, it tumbled by 236.15 points or 0.95% to settle at an over three-week low of 24,654.70. Since September 19, the index has been in a downward spiral, decreasing more than 3% in six straight sessions. Over this period, Sensex experienced a notable decline of 2,587.50 points or 3.16%.
In the wake of Trump’s tariffs, most pharmaceutical stocks faced significant selling pressure, dragging the BSE Healthcare index down by 2.14%. Notably, Wockhardt shares plummeted by 9.4%. Investors reacted sharply to these developments, worsening the challenging market environment.
In a post on the social media platform Truth Social, Trump clarified the basis for the new policy: “Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America.” He further added that the definition of “IS BUILDING” will include companies that have begun construction.
Among the major players on the Sensex, companies such as Mahindra & Mahindra, Eternal, Tata Steel, Bajaj Finance, Asian Paints, Sun Pharma, Tech Mahindra, Infosys, Tata Consultancy Services, and HCL Tech were among the biggest laggards of the session.
On the flip side, stocks like Larsen & Toubro, Tata Motors, ITC, and Reliance Industries showed some resilience by gaining during the day.
“Indian equities ended sharply lower after the US announced a steep 100% tariff on imports of branded and patented pharmaceutical products effective October 1. Investor sentiment, already fragile, reacted negatively, compounded by recent H-1B visa fee hikes which triggered heavy selling in IT stocks this week,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth management firm.
Both IT and healthcare stocks bore the brunt of the sell-off, causing broader market indices to fall as investors scrambled to reassess future earnings and export prospects.
Asia’s market performance mirrored the negativity in India with losses seen across key indices; South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng finished significantly lower.
While Asian markets struggled, European equity markets traded in a positive territory, and US markets closed lower the previous evening. On Thursday, the Sensex had already tumbled 555.95 points or 0.68% to finish at 81,159.68, while the Nifty declined by 166.05 points or 0.66% to close at 24,890.85.
In terms of foreign investments, Foreign Institutional Investors (FIIs) unloaded equities worth Rs 4,995.42 crore on Thursday, highlighting the nervousness among foreign capital holders.
Additionally, global crude oil prices remain under pressure, with the benchmark Brent crude declining by 0.27% to USD 69.23 a barrel. As global markets react to these developments, investors remain cautious, keeping a close watch on future policy announcements and market conditions.
