MUMBAI: The benchmark stock indices Sensex and Nifty dropped nearly 1 per cent on Friday, marking six consecutive days of decline. Heavy selling in pharmaceutical and IT shares followed US President Donald Trump’s announcement of 100 per cent duties on pharmaceutical drugs effective next month.
The 30-share BSE Sensex plummeted by 733.22 points, or 0.90 per cent, settling at 80,426.46 points. During the trading session, it touched a day low of 80,332.41 points, down by 827.27 points or 1 per cent. Meanwhile, the 50-share NSE Nifty fell by 236.15 points, or 0.95 per cent, closing at an over three-week low of 24,654.70 points.
These indices have shown a consistent downward trend since September 19, with the Nifty down over 3 per cent and the Sensex declining by 2,587.50 points or 3.16 per cent in just six sessions.
Pharmaceutical shares led the decline, dragging the BSE Healthcare index down by 2.14 per cent due to Trump’s proposed tariffs. Wockhardt shares suffered a significant hit, plunging 9.4 per cent.
In a post on the social media platform Truth Social, Trump expressed, “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 elaborated that “IS BUILDING” would include a definition involving ground-breaking or construction phases.
Amidst the downturn, notable Sensex firms like Mahindra & Mahindra, Tata Steel, Bajaj Finance, and Infosys reported significant losses. In contrast, companies like Larsen & Toubro, Tata Motors, ITC, and Reliance Industries managed to post gains.
“Indian equities reacted sharply on Friday amid widespread sell-off influenced by the US announcement of a steep 100% tariff on branded pharmaceuticals. This unexpected decision unnerved investors, already concerned about the recent hike in H-1B visa fees, prompting a sell-off in IT stocks this week,” said Ponmudi R, CEO of Enrich Money, a technology-based wealth management firm.
Investor confidence wavered as both IT and healthcare stocks faced the brunt of the sell-off. Analysts noted that investors were compelled to reassess earnings outlooks and the growth prospects for exports in light of the new tariffs.
Meanwhile, Asian markets also experienced declines, with South Korea’s Kospi, Japan’s Nikkei 225, the Shanghai Composite Index, and Hong Kong’s Hang Seng all closing significantly lower.
In Europe, equity markets showed positive movement, while US markets ended lower on Thursday.
Foreign Institutional Investors (FIIs) substantially offloaded equities, selling securities worth Rs 4,995.42 crore on Thursday, according to exchange data, further adding to the sell-off pressure.
On the commodities front, the global oil benchmark Brent crude saw a minor decline of 0.27 per cent, trading at USD 69.23 a barrel.
Notably, on Thursday, the Sensex had already faced a downturn, losing 555.95 points or 0.68 per cent, while the Nifty fell by 166.05 points or 0.66 per cent, indicating an ongoing struggle for market stability.
