MUMBAI: The benchmark stock indices, Sensex and Nifty, plunged nearly 1% on Friday following President Donald Trump’s announcement of a 100% duty on pharmaceutical drugs, marking the sixth consecutive day of decline in Indian equities. This announcement significantly impacted investor sentiment, particularly hitting pharma and IT sectors.
In the trading session, the 30-share BSE Sensex dropped by 733.22 points, or 0.90%, settling at a three-week low of 80,426.46. Earlier in the day, it fell by as much as 827.27 points, reaching 80,332.41. Meanwhile, the 50-share NSE Nifty tumbled 236.15 points, or 0.95%, also hitting an over three-week low of 24,654.70. Since September 19, the Nifty has fallen by more than 3%, while the Sensex has decreased by 2,587.50 points, or 3.16%, over the past six sessions.
Trump’s announcement on social media stated, “Starting October 1st, 2025, we will impose a 100% Tariff on any branded or patented Pharmaceutical Product, unless a company is building their manufacturing plant in America.” He clarified that ‘building’ means breaking ground or being under construction, which implies that products from manufacturing plants under development will be exempt from these tariffs.
Consequently, the BSE Healthcare index saw a decline of 2.14%, with numerous pharma stocks suffering losses. Wockhardt, for example, saw a staggering drop of 9.4%. Other substantial laggards included major firms like Mahindra & Mahindra, Tata Steel, Bajaj Finance, Asian Paints, Sun Pharma, and Infosys.
Conversely, companies like Larsen & Toubro, Tata Motors, ITC, and Reliance Industries managed to turn a profit amid the turmoil.
“Indian equities ended sharply lower after the US announced a steep 100% tariff on imports of branded and patented pharmaceutical products effective October 1. The unexpected declaration unsettled investor confidence, which was already fragile in light of the recent hike in H-1B visa fees that led to heavy selling in IT stocks earlier this week,” remarked Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm.
Both IT and healthcare sectors were at the forefront of the sell-off, as investors recalibrated earnings forecasts and assessed prospects for export growth following the tariff announcement. The broader market felt the squeeze as investor concerns heightened.
Across Asia, major indices mirrored this decline, with South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng all closing in the red. In contrast, European markets exhibited positive trading momentum during the same period.
On Thursday, the Sensex had previously recorded a drop of 555.95 points, or 0.68%, closing at 81,159.68, while the Nifty fell by 166.05 points, or 0.66%, to reach 24,890.85. Foreign Institutional Investors (FIIs) contributed to the sell-off, offloading equities worth Rs 4,995.42 crore, according to exchange data.
Meanwhile, the global oil benchmark Brent crude experienced a decline of 0.27%, settling at USD 69.23 per barrel, reflecting broader market uncertainties.
