MUMBAI: The benchmark stock indices, Sensex and Nifty, fell nearly 1% on Friday, marking their sixth consecutive day of decline. Heavy selling in pharma and IT shares followed US President Donald Trump’s announcement of 100% duties on pharmaceutical drugs effective October 1.
The BSE Sensex plummeted 733.22 points, or 0.90%, to settle at 80,426.46, hitting a three-week low. At its lowest, it dropped 827.27 points, or 1%, to 80,332.41. Similarly, the NSE Nifty tumbled 236.15 points, or 0.95%, to an over three-week low of 24,654.70.
Notably, both indices have displayed continuous declines since September 19, with the Sensex dropping 2,587.50 points or 3.16% during these six sessions. The Nifty has also seen a downturn exceeding 3% in this timeframe.
The announcement from President Trump intensified the sell-off, causing significant declines in the healthcare sector. The BSE Healthcare index dropped 2.14%, with major pharma stocks suffering dramatically. Wockhardt, for instance, witnessed a sharp decline of 9.4%.
On social media platform Truth Social, Trump articulated, “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.” Trump detailed that “IS BUILDING” refers to projects that have broken ground or are under construction, thus offering a possible path for companies to avoid these tariffs.
Among the notable firms on the Sensex, Mahindra & Mahindra, Tata Steel, Bajaj Finance, and Infosys emerged as significant laggards. On the contrary, stocks like Larsen & Toubro and Tata Motors managed to post gains amidst the overall market decline.
Industry experts cited the tariff announcement as a pivotal factor dragging the market down. “Indian equities ended sharply lower in a broad-based sell-off. The announced tariffs rattled already fragile investor sentiment,” said Ponmudi R, CEO of Enrich Money. “This comes on the heels of recent hikes in H-1B visa fees, triggering heavy selling in IT stocks this week.”
Trump’s tariff decision significantly impacts both IT and healthcare sectors as investors scramble to reassess earnings outlooks and growth potential for these companies.
Across Asian markets, South Korea’s Kospi, Japan’s Nikkei 225, and Hong Kong’s Hang Seng indices all closed substantially lower. In contrast, European markets showed some resilience, trading in positive territory while US markets had ended lower on Thursday.
According to exchange data, Foreign Institutional Investors (FIIs) offloaded equities worth ₹4,995.42 crores on Thursday, compounding the challenges for Indian markets.
As oil prices hover closely, the global oil benchmark Brent crude dipped 0.27% to USD 69.23 a barrel. The market volatility raised concerns among investors, who remain cautious ahead of the impending tariff implementation.
Previous market sessions added more fuel to the fire, with the Sensex falling by 555.95 points or 0.68% to close at 81,159.68 on Thursday. Similarly, the Nifty had tumbled 166.05 points or 0.66% to settle at 24,890.85, further highlighting the ongoing bearish sentiment.