MUMBAI: The benchmark stock indices Sensex and Nifty faced significant declines on Friday, dropping nearly 1 per cent each as turmoil hit the pharmaceutical and IT sectors. This downturn follows US President Donald Trump’s announcement of a 100 per cent tariff on imported pharmaceutical drugs, effective from October 1, 2025.
The 30-share BSE Sensex plunged 733.22 points, or 0.90 per cent, closing at a three-week low of 80,426.46. At its lowest point during the day, the index fell by 827.27 points, marking a troubling trend for Indian equities. Similarly, the 50-share NSE Nifty ended the day down 236.15 points, or 0.95 per cent, settling at 24,654.70.
This drop marks the sixth consecutive day of decline for both indices, with the Sensex witnessing a total decrease of 2,587.50 points, a staggering 3.16 per cent drop since September 19. The ongoing sell-off predominantly impacts the pharmaceutical sector, which saw the BSE Healthcare index decrease by 2.14 per cent.
Heavyweights in the pharma sector, including Wockhardt, experienced sharp declines, with its shares plummeting by 9.4 per cent. Other affected stocks include Sun Pharma and various IT firms, exacerbating investor unease.
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 Pharmaceutical Manufacturing Plant in America.” He further clarified that the term “IS BUILDING” would include companies that have already started construction.
Among the largest companies on the Sensex, notable losers included Mahindra & Mahindra, Tata Steel, and Infosys, which all felt the impact of the tariff announcement. However, stocks such as Larsen & Toubro, Tata Motors, and ITC posted gains amidst the turmoil.
Ponmudi R, CEO of Enrich Money, commented on the situation, stating, “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, which was still responding to the recent hike in H-1B visa fees that affected IT stocks this week.”
He further explained, “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.”
Globally, the Asian markets mirrored this downward trend, with South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng index closing significantly lower. However, European markets were trading positively despite the downturn in Asia and the US markets, which finished lower on Thursday.
Foreign Institutional Investors (FIIs) significantly altered their investment strategies, offloading equities worth Rs 4,995.42 crore on Thursday, a reflection of the growing concern among investors. As the market processed these changes, global oil benchmark Brent crude saw a slight decline of 0.27 per cent, now priced at USD 69.23 a barrel.
On Thursday prior, the Sensex had already recorded a decline of 555.95 points, or 0.68 per cent, closing at 81,159.68 while the Nifty dropped by 166.05 points, or 0.66 per cent, to 24,890.85. The ramifications of these developments continue to unfold as investors navigate through increased volatility in the stock market, influenced heavily by international policy decisions.
