Sensex, Nifty fall almost 1% each on concerns over Trump’s pharma tariffs

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.

Investors aggressively offloaded shares in pharma and IT stocks on Friday. Sustained selling by foreign portfolio investors (FPIs) also weighed on market sentiments, analysts said.

“Risk off sentiment continued in equity markets, as markets extended losing streak for sixth straight session on across-the-board selling amid Trump’s decision to impose 100 per cent tariff on branded and patented drugs that further soured investors’ sentiment,” said Prashanth Tapse, senior VP (Research), Mehta Equities Ltd.

In a post of Truth Social on Friday, Trump said that starting October 1, 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 also announced that a 50 per cent tariff on all kitchen cabinets, bathroom vanities, and associated products will be imposed from October 1.

While the announcement stirred sharp falls in pharma stocks, the actual impact for now is focused on branded, patent-protected medicines—most Indian exports are generics, which remain exempt. “Still, the uncertainty around future policy shifts keeps nerves on edge. For India’s pharma giants, this is a wake-up call to strengthen supply chains and explore US-based manufacturing, even as the sector’s core strength in affordable generics continues to support global healthcare,” said Ajit Mishra, senior vice president, Research, Religare Broking.

The Nifty Pharma fell 2.14 per cent. Among pharma stocks, Sun 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 the stocks in Nifty IT ended in red, with Oracle Financial Services Software Ltd falling 4.09 per cent and LTIMindtree Ltd declining 3.2 per cent. Infosys ended 2.02 per cent down and HCL Technologies lost 2.02 per cent.

“IT stocks witnessed selling pressure after weak outlook from Accenture dampened investor sentiment, along-with continued concerns over the recent H-1B visa fee hike,” said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

All the major broad market indices ended in red on Friday, with Nifty Midcap 100 slipping 2.05 per cent and Nifty Smallcap 100 plunging 2.26 per cent.