MUMBAI: The Indian stock market faced a significant downturn on Friday, with benchmark indices Sensex and Nifty declining nearly 1%. This slump comes in response to US President Donald Trump’s announcement that will impose 100% tariffs on pharmaceutical products, effective October 1, 2025.
The 30-share BSE Sensex tumbled by 733.22 points or 0.90% to close at 80,426.46, marking its lowest level in three weeks. During trading hours, it briefly plummeted 827.27 points to 80,332.41.
On the other hand, the 50-share NSE Nifty experienced a drop of 236.15 points or 0.95% to end at 24,654.70, also hitting its lowest point in over three weeks. This decline follows a troubling trend that has seen Nifty fall over 3% since September 19, contributing to a cumulative loss of 2,587.50 points or 3.16% across six sessions.
An extensive sell-off across various sectors particularly affected pharmaceutical stocks. The BSE Healthcare index noted a decline of 2.14% following Trump’s tariff announcement, which heavily impacted shares like Wockhardt, which tanked by 9.4%.
In a post on Truth Social, Trump outlined the forthcoming tariffs, stating, “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.” This statement introduced uncertainty regarding future trade relations between India and the US, a significant concern for Indian pharmaceutical exports.
Among the Sensex companies affected, Mahindra & Mahindra, Tata Steel, Infosys, and HCL Tech faced severe losses, while companies like Larsen & Toubro and Tata Motors managed to record gains.
Market analysts noted that Indian equities experienced sharp declines due to the unexpected tariff announcement. Ponmudi R, CEO of Enrich Money, highlighted the emotional turmoil investors face, stating, “The unexpected move rattled already fragile investor sentiment, which was still digesting the recent hike in H-1B visa fees that triggered heavy selling in IT counters this week.”
As the day progressed, Asian markets reflected similar sentiments, with South Korea’s Kospi, Japan’s Nikkei 225, and Shanghai’s SSE Composite index registering losses. In contrast, equity markets in Europe showed resilience by remaining in positive territory, while US markets had closed lower on Thursday.
According to data from stock exchanges, Foreign Institutional Investors (FIIs) sold off equities worth ₹4,995.42 crore on Thursday, revealing the adverse impact of global market dynamics on local sentiments.
Additionally, the global oil benchmark Brent crude also reflected market unrest, dipping 0.27% to $69.23 a barrel. This downturn aligns with investor concerns regarding future economic conditions as tariffs may drive up drug prices and stunt growth.
Thursday’s trading session had already signalled trouble, with the Sensex dropping 555.95 points or 0.68% to close at 81,159.68, while the Nifty succumbed to a 166.05 point or 0.66% decline to 24,890.85.
