MUMBAI: The Indian stock markets, represented by benchmark indices Sensex and Nifty, experienced a significant decline of nearly 1 percent on Friday. This slump marks the sixth consecutive day of losses, driven primarily by heavy selling in pharmaceutical and IT shares following the announcement of 100 percent import duties on drugs by US President Donald Trump.
The 30-share BSE Sensex dropped 733.22 points or 0.90 percent, closing at a three-week low of 80,426.46. Throughout the trading session, it fell to an intraday low of 80,332.41, marking a drop of 827.27 points or 1 percent.
Similarly, the 50-share NSE Nifty witnessed a decline of 236.15 points or 0.95 percent, settling at an over three-week low of 24,654.70. Since September 19, the index has declined more than 3 percent over six consecutive trading sessions. The Sensex has lost 2,587.50 points or 3.16 percent during this period.
Many pharmaceutical shares saw sharp declines, contributing to a 2.14 percent reduction in the BSE Healthcare index. In particular, Wockhardt’s stock plummeted by 9.4 percent following the tariff news.
In a post shared on the social media platform Truth Social, Trump stated, “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 defined “IS BUILDING” as companies that have broken ground or are under construction on a manufacturing facility. Products from such companies will not incur tariffs.
Major laggards among Sensex firms included Mahindra & Mahindra, Eternal, Tata Steel, Bajaj Finance, Asian Paints, Sun Pharma, Tech Mahindra, Infosys, Tata Consultancy Services, and HCL Tech.
In contrast, stocks of Larsen & Toubro, Tata Motors, ITC, and Reliance Industries showed positive performance amidst the downturn.
Ponmudi R, CEO of Enrich Money, expressed concerns over the market’s reaction, stating, “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 pharmaceutical products effective October 1. This unexpected move rattled already fragile investor sentiment, which was still digesting the recent hike in H-1B visa fees.”
He further remarked, “Both IT and healthcare stocks bore the brunt of the sell-off, dragging the broader indices lower as investors rushed to reassess earnings outlooks and export growth prospects.”
The troubles in Indian equity markets reflect broader trends observed in Asian markets. South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng all ended significantly lower.
On a different note, European equity markets displayed resilience, trading in positive territory while US markets closed lower on Thursday.
Additionally, Foreign Institutional Investors (FIIs) sold equities worth Rs 4,995.42 crore on Thursday, contributing to the downward pressure observed in the Indian stock markets.
Global oil benchmark Brent crude experienced a slight dip of 0.27 percent, settling at USD 69.23 a barrel.
This dip in the Indian stock markets is consistent with the trend observed on Thursday, where the Sensex fell by 555.95 points or 0.68 percent, concluding the day at 81,159.68. Meanwhile, the Nifty also suffered a decline of 166.05 points or 0.66 percent, closing at 24,890.85.
