MUMBAI: The benchmark stock indices, Sensex and Nifty, faced sharp declines of nearly 1% on Friday, reflecting a sixth day of continuous downward movement. This steep fall followed US President Donald Trump’s declaration of a 100% tariff on pharmaceutical imports starting next month, leading to significant selling in the pharma and IT sectors.
The 30-share BSE Sensex plummeted by 733.22 points, or 0.90%, settling at a three-week low of 80,426.46. During trading, it exhibited further volatility, touching an intraday low of 80,332.41, representing a drop of 827.27 points or 1%.
Similarly, the 50-share NSE Nifty faced substantial pressure, tumbling 236.15 points, equivalent to a 0.95% loss, concluding at an over three-week low of 24,654.70. Since September 19, the index has eroded over 3%, marking a concerning trend for investors as it recorded consistent declines over six consecutive sessions. Over this period, the Sensex has suffered a total drop of 2,587.50 points, accounting for a significant 3.16% decrease in value.
Trump’s tariff announcement particularly impacted the pharmaceutical sector, resulting in the BSE Healthcare index sinking by 2.14%. Notably, Wockhardt shares plummeted a staggering 9.4%. Investors reacted swiftly, propelling a wave of sell-offs across the market.
In a post on the social media platform Truth Social, Trump stated, “Starting October 1st, 2025, we will impose a 100% tariff on any branded or patented Pharmaceutical Product unless a company is building their manufacturing plant in America.” This clarification raised concerns among investors, emphasizing that projects must be “under construction” to avoid these tariffs.
Among prominent Sensex firms, several giants like Mahindra & Mahindra, Tata Steel, Bajaj Finance, and Infosys were among the major losers. On the flip side, some companies like Larsen & Toubro and Reliance Industries managed to post gains even amid the downturn.
Ponmudi R, CEO of Enrich Money, commented, “Indian equities ended sharply lower in a broad-based sell-off after the US announced a steep 100% tariff on imports of branded and patented pharmaceuticals effective October 1. The unexpected policy shift further rattled investor sentiment, already shaken by recent increases in H-1B visa fees, causing substantial erosion in IT stocks.”
Ponmudi added, “Both the IT and healthcare sectors bore the brunt of the sell-off. This prompted investors to urgently reassess their earnings outlooks and growth prospects in export markets.”
In the Asian market sphere, South Korea’s Kospi, Japan’s Nikkei 225, and China’s Shanghai Composite index faced notable declines as global sentiment remained cautious. Conversely, European equity markets exhibited an upward trend, while US markets shifted lower the previous day.
Exchange data revealed that Foreign Institutional Investors (FIIs) sold equities worth Rs 4,995.42 crore on Thursday, underscoring the heightened volatility in the markets.
Additionally, the global oil benchmark Brent crude oil experienced a slight dip of 0.27%, settling at USD 69.23 per barrel, further reflecting global economic concerns.
The turbulent trading day followed an already bleak Thursday, where the Sensex had dropped by 555.95 points, or 0.68%, to finish at 81,159.68, and the Nifty fell by 166.05 points, or 0.66%, to conclude at 24,890.85.
