MUMBAI: The benchmark stock indices, Sensex and Nifty, fell nearly 1 per cent on Friday, marking their sixth consecutive day of decline due to heavy selling in pharma and IT shares. This dip followed US President Donald Trump’s announcement of a steep 100 per cent tariff on pharmaceutical drugs starting next month.
The 30-share BSE Sensex plummeted by 733.22 points, or 0.90 per cent, to close at a three-week low of 80,426.46. Earlier in the day, it had seen a decline of up to 827.27 points, trading as low as 80,332.41.
Similarly, the 50-share NSE Nifty dropped by 236.15 points, or 0.95 per cent, reaching an over three-week low of 24,654.70. This index has consistently declined since September 19, with a total drop of over 3 per cent during these six sessions. The Sensex has lost 2,587.50 points, or 3.16 per cent, within the same timeframe.
Following Trump’s tariff announcement, most pharmaceutical shares experienced a significant downturn, leading to a 2.14 per cent fall in the BSE Healthcare index. Notably, Wockhardt shares crashed by 9.4 per cent.
In a post on his social media platform, Truth Social, Trump wrote, “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 clearly outlines that the tariff will not apply if construction has commenced.
Among the Sensex companies, top losers included Mahindra & Mahindra, Eternal, Tata Steel, Bajaj Finance, Asian Paints, Sun Pharma, Tech Mahindra, Infosys, Tata Consultancy Services, and HCL Tech.
In contrast, some firms like Larsen & Toubro, Tata Motors, ITC, and Reliance Industries managed to record gains amidst the broader market losses.
Market analyst Ponmudi R, CEO of Enrich Money, noted, “Indian equities ended sharply lower on Friday 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. The unexpected move rattled already fragile investor sentiment.”
He added, “Both IT and healthcare stocks bore the brunt of the sell-off, dragging the broader indices lower. Investors rushed to reassess earnings outlooks and export growth prospects in light of these developments.”
Internationally, Asian markets faced a downturn as well, with South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng indices all closing significantly lower.
Meanwhile, European equity markets showed a positive trend, and US markets reported losses on Thursday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,995.42 crore on Thursday, highlighting a trend of capital withdrawal amid fluctuating market conditions, as indicated by exchange data.
On the commodities front, global oil benchmark Brent crude saw a marginal dip of 0.27 per cent, trading at USD 69.23 a barrel. This fluctuation underscores the interconnectedness of global markets.
In the previous session, the Sensex had declined by 555.95 points, or 0.68 per cent, closing the day at 81,159.68, while the Nifty had tumbled by 166.05 points, or 0.66 per cent, settling at 24,890.85.
