MUMBAI: The Sensex and Nifty indices tumbled nearly 1 per cent on Friday, marking their sixth consecutive day of decline. This decline follows US President Donald Trump’s announcement of a 100 per cent tariff on pharmaceutical drugs, effective from October 1, 2025.
The 30-share BSE Sensex witnessed a sharp drop of 733.22 points or 0.90 per cent, settling at a three-week low of 80,426.46. At one point during the trading session, it fell to 80,332.41, marking a drop of 827.27 points or 1 per cent.
Meanwhile, the 50-share NSE Nifty also faced a significant setback, tumbling 236.15 points or 0.95 per cent to close at 24,654.70. Since September 19, the Nifty has experienced a decline of over 3 per cent in six straight sessions. Overall, the Sensex plummeted by 2,587.50 points or 3.16 per cent in this six-session stretch.
Market analysts pointed to extensive pressure on pharmaceutical stocks, pushing the BSE Healthcare index down by 2.14 per cent. Companies like Wockhardt saw their shares plummet, falling by 9.4 per cent.
In a strongly worded statement on social media platform Truth Social, Trump announced, “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 added that “IS BUILDING” will mean “breaking ground” or “under construction,” thereby exempting such pharmaceutical products from tariffs if construction has commenced.
Among the major firms on the Sensex, considerable losses were reported by Mahindra & Mahindra, Tata Steel, Bajaj Finance, Sun Pharma, and Infosys. Despite this downturn, some companies like Larsen & Toubro, Tata Motors, and Reliance Industries managed to post gains amidst the broader sell-off.
“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,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm. He pointed out that the hike in H-1B visa fees further exacerbated the selling pressure in IT counters this week.
Both IT and healthcare sectors bore the brunt of the sell-off. Investors rushed to reassess their earnings outlooks and export growth prospects, impacting broader indices significantly.
Asian markets also reflected this trend, with South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng closing significantly lower. In contrast, equity markets in Europe showed slight positive movement, while US markets ended lower on Thursday.
Foreign Institutional Investors (FIIs) reported offloading equities worth approximately Rs 4,995.42 crore on Thursday alone, according to exchange data, signalling a notable shift in investment trends.
Amidst this market turmoil, global oil benchmark Brent crude fell by 0.27 per cent to USD 69.23 per barrel.
On the trading day before, the Sensex had already seen a decline of 555.95 points or 0.68 per cent, closing at 81,159.68. The Nifty had dropped 166.05 points or 0.66 per cent to 24,890.85.
