Sensex drops over 400 pts, Nifty below 24,800 as D-St extends losses to day 6 after Trump slaps fresh tariffs
The Economic Times·2025-09-26 03:59

Market Overview - Indian stocks experienced a decline, with the Sensex and Nifty extending losses for the sixth consecutive session, primarily driven by concerns over new tariffs imposed by U.S. President Donald Trump on pharmaceutical products [15][16] - The S&P BSE Sensex fell by 235.99 points, or 0.29%, opening at 80,923.69, while the NSE Nifty 50 decreased by 80.35 points, or 0.32%, opening at 24,810.50 [15][16] Pharmaceutical Sector Impact - The Nifty Pharma index dropped 2.3%, with all constituents trading lower; Sun Pharma fell 5% to a 52-week low, while Biocon and other major pharmaceutical companies also experienced declines [15][16] - The U.S. accounts for over a third of India's pharmaceutical exports, which mainly consist of low-cost generic drugs; shipments to the U.S. increased by 20% to approximately $10.5 billion in FY25 [3][15] Tariff Announcements - President Trump announced a 100% tariff on branded and patented drugs and a 25% tariff on heavy-duty trucks, effective October 1, which has negatively affected market sentiment [4][16] - Analysts suggest that while India, as an exporter of generic drugs, may not be immediately impacted, there are concerns that future tariffs could target generic drugs, potentially affecting pharmaceutical stocks sentiment [7][16] Broader Market Trends - The midcap and smallcap indices also fell, by 0.8% and 1.2% respectively, reflecting a broader market decline [4][16] - Asian stocks declined overall, with significant losses in pharmaceutical shares following the tariff announcements, indicating a regional impact on the sector [10][11] Institutional Investment Activity - Foreign Institutional Investors (FIIs) sold equities worth over ₹4,995 crore on September 25, while Domestic Institutional Investors (DIIs) were net buyers of ₹5,103 crore [12][16] Technical Analysis - Technical analysts indicate that the market is near the 20-day Simple Moving Average (SMA), suggesting a potential pullback; however, if upswings are limited, the downside objective could extend to 24,680 [9][16]