MUMBAI: The benchmark stock indices Sensex and Nifty tumbled nearly 1 per cent on Friday, marking their sixth consecutive day of decline. Heavy selling in pharma and IT shares followed US President Donald Trump’s announcement of a 100% import tariff on pharmaceutical drugs starting next month.
The 30-share BSE Sensex plunged 733.22 points, or 0.90 per cent, settling at a three-week low of 80,426.46. During the trading session, it witnessed a significant drop, touching 80,332.41, down 827.27 points or 1 per cent.
Similarly, the NSE Nifty traded down 236.15 points, or 0.95 per cent, closing at an over three-week low of 24,654.70. This decline continues a troubling trend for investors, as the index has fallen over 3 per cent in just six straight sessions since September 19. The Sensex has lost 2,587.50 points or 3.16 per cent during the same period.
Most pharmaceutical shares contributed to this downturn, leading the BSE Healthcare index to decrease by 2.14 per cent. Notably, Wockhardt shares plummeted by 9.4 per cent in response to the news.
In a post on social media platform Truth Social, Trump announced, “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.” He clarified that this would mean companies must have broken ground or be under construction to avoid the tariff.
Among Sensex firms, the largest declines came from Mahindra & Mahindra, Eternal, Tata Steel, Bajaj Finance, Asian Paints, Sun Pharma, Tech Mahindra, Infosys, Tata Consultancy Services, and HCL Tech. In contrast, Larsen & Toubro, Tata Motors, ITC, and Reliance Industries managed to post gains.
Ponmudi R, CEO of Enrich Money, said, “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 digesting the recent hike in H-1B visa fees that triggered heavy selling in IT counters this week.”
He added, “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.”
Internationally, Asian markets experienced similar turmoil, with South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng all closing significantly lower. Conversely, European equity markets traded in positive territory during the same period, while US markets finished lower on Thursday.
Foreign Institutional Investors (FIIs) also contributed to the market’s woes, offloading equities worth Rs 4,995.42 crore on Thursday, according to exchange data.
On the commodities front, the global oil benchmark Brent crude fell 0.27 per cent to USD 69.23 a barrel.
As a recap, Thursday saw the Sensex decline by 555.95 points, or 0.68 per cent, closing at 81,159.68, while the Nifty dropped 166.05 points, or 0.66 per cent, to finish at 24,890.85. This selling frenzy raises concerns about the growing volatility in the market.
