Indian equity benchmarks opened lower on Friday, tracking weakness across global markets after US President Donald Trump announced steep tariffs on pharmaceutical imports. Continued selling by foreign institutional investors (FIIs) also weighed on sentiment.
At 9:25 am, the Sensex was down 388 points, or 0.48 per cent, at 80,771, while the Nifty slipped 119 points, or 0.48 per cent, to 24,771.
Shares of Indian and other Asian pharmaceutical companies declined after Trump unveiled tariffs of up to 100 per cent on branded and patented drug imports starting October 1, 2025. He also announced duties of 50 per cent on kitchen cabinets and bathroom vanities, 30 per cent on upholstered furniture, and 25 per cent on heavy trucks.
The US is India’s largest export market for pharmaceuticals, accounting for 31 per cent of outbound shipments. While analysts believe India’s generics sector is unlikely to be immediately impacted, they cautioned that sentiment around pharma stocks may weaken on fears of future action against generic medicines.
On the Nifty, Cipla, Dr Reddy’s Labs, Titan Company, Asian Paints and Bajaj Finance were among the top losers, while L&T, Hero MotoCorp, Hindalco, Tata Steel and ONGC posted gains. Sectorally, Nifty Pharma was the biggest drag, down 2.39 per cent, followed by Nifty PSU Bank (down 1.11 per cent) and Nifty Healthcare Index (down 2.20 per cent).
Broader indices also traded weak, with the Nifty Midcap 100 down 0.18 per cent and the Nifty Smallcap 100 slipping 0.20 per cent. On the technical front, analysts said the Nifty’s decisive close below 25,000 indicated a downside bias, with resistance seen near 25,000–25,050 and immediate support around 24,700–24,750.
Overnight, US markets closed lower, with the Nasdaq falling 0.50 per cent, the S&P 500 down 0.50 per cent, and the Dow dropping 0.38 per cent. Asian equities mirrored the weakness, as Shanghai dipped 0.18 per cent, Shenzhen lost 0.79 per cent, Japan’s Nikkei fell 0.43 per cent, Hong Kong’s Hang Seng declined 0.79 per cent, and South Korea’s Kospi tumbled 2.52 per cent.
Market watchers said the global backdrop is becoming more challenging as the US economy edges toward stagflation, with slowing growth, rising unemployment, and inflation climbing from recent lows.
On Thursday, FIIs sold equities worth Rs 4,995 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 5,000 crore.
–IANS
