MUMBAI: On Friday, benchmark stock indices Sensex and Nifty fell nearly 1% amid heavy selling in pharma and IT shares. The decline comes after US President Donald Trump announced a steep 100% tariff on pharmaceutical drugs, effective from October 1.
The 30-share BSE Sensex plunged 733.22 points, or 0.90%, settling at 80,426.46—the lowest level in three weeks. During the session, it even dipped 827.27 points, reaching 80,332.41.
Meanwhile, the 50-share NSE Nifty dropped 236.15 points, or 0.95%, also settling at an over three-week low of 24,654.70. This continued a downward trend since September 19, during which the index has shaved off more than 3% in six consecutive sessions. Overall, the Sensex has fallen by 2,587.50 points—or 3.16%—in this period.
The announcement by Trump has severely impacted the pharma sector, leading to a 2.14% drop in the BSE Healthcare index. Stocks like Wockhardt saw a staggering fall of 9.4% following the news.
In a post 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.” The US President emphasized that the definition of “building” includes “breaking ground” or being “under construction.” This means that no tariff will be enforced provided that construction is already underway.
Among the firms listed on the Sensex, notable laggards included Mahindra & Mahindra, Tata Steel, Infosys, and HCL Tech, all showing significant declines.
In contrast, a few stocks experienced gains, with Larsen & Toubro, Tata Motors, ITC, and Reliance Industries showing positive movement amidst the turmoil.
The Indian equity markets faced considerable pressure due to the unexpected announcement by the US government. Ponmudi R, CEO of Enrich Money, remarked, “The shocking 100% tariff on pharmaceutical products prompted a broad-based sell-off. Investors are reassessing the earnings outlook and export growth prospects following this news.”
Asian markets mirrored this sentiment, with key indices like South Korea’s Kospi, Japan’s Nikkei 225, and Hong Kong’s Hang Seng all closing lower.
In contrast, equity markets in Europe reported gains while US markets ended lower on Thursday.
The sell-off intensified after Foreign Institutional Investors (FIIs) sold equities valued at Rs 4,995.42 crore, indicating a significant flight of capital from the Indian market.
Additionally, global oil prices also felt the pressure, with Brent crude slipping 0.27% to USD 69.23 a barrel.
In the previous session, the Sensex had already recorded a loss of 555.95 points or 0.68%, finishing at 81,159.68, while the Nifty had tumbled by 166.05 points, or 0.66%, to close at 24,890.85.
