Home inventory markets got here below heavy promoting stress on Friday, with Sensex and Nifty declining one per cent every, after US President Donald Trump introduced a 100 per cent tariff on branded and patented medication – a transfer that weighed closely on pharma shares.
The BSE’s Sensex slipped 0.9 per cent, or 733.22 factors, to shut at 80,426.46, whereas the broader Nifty fell 0.95 per cent, or 236.15 factors to complete the session at 24,654.7. Each indices witnessed their sixth consecutive session of losses. Within the final six buying and selling classes, the Sensex declined 3.12 per cent, or 2,587.5 factors, and the Nifty tanked 3.02 per cent, or 768.9 factors.
Notably, on September 26, 2024, the Sensex and Nifty had closed at their all-time highs of 85,836.12 and 26,216.05, respectively.
Buyers aggressively offloaded shares in pharma and IT shares on Friday. Sustained promoting by overseas portfolio traders (FPIs) additionally weighed on market sentiments, analysts stated.
“Threat off sentiment continued in fairness markets, as markets prolonged shedding streak for sixth straight session on across-the-board promoting amid Trump’s determination to impose 100 per cent tariff on branded and patented medication that additional soured traders’ sentiment,” stated Prashanth Tapse, senior VP (Analysis), Mehta Equities Ltd.
In a publish of Reality Social on Friday, Trump stated that beginning October 1, 2025, “we will probably be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, except a Firm IS BUILDING their Pharmaceutical Manufacturing Plant in America.” He additionally introduced {that a} 50 per cent tariff on all kitchen cupboards, toilet vanities, and related merchandise will probably be imposed from October 1.
Whereas the announcement stirred sharp falls in pharma shares, the precise impression for now could be centered on branded, patent-protected medicines—most Indian exports are generics, which stay exempt. “Nonetheless, the uncertainty round future coverage shifts retains nerves on edge. For India’s pharma giants, it is a wake-up name to strengthen provide chains and discover US-based manufacturing, even because the sector’s core energy in reasonably priced generics continues to help international healthcare,” stated Ajit Mishra, senior vp, Analysis, Religare Broking.
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The Nifty Pharma fell 2.14 per cent. Amongst pharma shares, Solar Pharma declined 2.61 per cent, Biocon decreased 4.78 per cent and Lupin fell 2.07 per cent. Dr Reddy’s declined 1.66 per cent, and Zydus Lifesciences ended 4.35 per cent down.
All of the shares in Nifty IT resulted in pink, with Oracle Monetary Providers Software program Ltd falling 4.09 per cent and LTIMindtree Ltd declining 3.2 per cent. Infosys ended 2.02 per cent down and HCL Applied sciences misplaced 2.02 per cent.
“IT shares witnessed promoting stress after weak outlook from Accenture dampened investor sentiment, along-with continued considerations over the current H-1B visa charge hike,” stated Siddhartha Khemka, Head of Analysis, Wealth Administration, Motilal Oswal Monetary Providers Ltd.
All the key broad market indices resulted in pink on Friday, with Nifty Midcap 100 slipping 2.05 per cent and Nifty Smallcap 100 plunging 2.26 per cent.
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