Indian equity benchmarks declined for a third consecutive trading session as concerns increased following US President Donald Trump's announcement of a phased plan to impose tariffs on imported generic medicines. The announcement weighed on pharmaceutical stocks, while broader market selling pressure also persisted.
In early trade on Thursday, the BSE Sensex fell by more than 600 points at one stage, while the NSE Nifty 50 moved close to the 24,000 psychological level. At around 9:40 a.m., the Sensex was trading at 76,894.82, down 575.29 points, or 0.74%. The Nifty 50 was down 159.15 points, or 0.66%, at 24,028.55.
Market weakness was attributed to increased uncertainty surrounding the US tariff policy. India is among the world's leading producers of generic medicines, and Indian pharmaceutical companies generate significant business from the US market. The possibility of higher US import tariffs has raised investor concerns over the potential impact on companies' costs, margins, and export business.
Indian pharmaceutical stocks came under pressure following the tariff-related announcement. Investors are concerned that additional duties on Indian medicines in the US market could affect the competitive position and profitability of pharmaceutical companies. Selling was also seen across other major stocks. Of the 30 Sensex constituents, 25 were trading in negative territory.
IndiGo recorded the sharpest decline among Sensex constituents. Shares of Sun Pharma, Infosys, Tech Mahindra, State Bank of India (SBI), HDFC Bank, ICICI Bank, TCS, Bajaj Finserv, and Bharat Electronics Limited (BEL) also traded lower. Despite the broader market weakness, buying was seen in select stocks, including Maruti Suzuki, Mahindra & Mahindra, Trent, Hindustan Unilever, and Eternal.
The Indian rupee also opened weaker against the US dollar amid the equity market decline. In early trade, the rupee was down about 0.1% at 96.3425 per US dollar, compared with its previous close of 96.2350.
With the rupee weakening and concerns over potential foreign investor selling in equities, market participants are monitoring global market cues and developments related to US trade policy. Indian equity markets are already navigating multiple global and domestic challenges, and the new US tariff policy has added to market uncertainty. Companies with greater dependence on the US market could face increased pressure. Market experts said additional details from the US administration on the tariff policy will be important in the coming days.
