Why Did the Stock Market Plummet Over US Pharma Tariffs? Nifty Drops Below 24,700
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Synopsis
The Indian equity market faced a significant downturn this week, largely due to newly imposed US tariffs on pharmaceuticals. With Nifty Pharma dropping 2.14%, investors are left anxious about future market conditions. Dive into the details of this financial shake-up.
Key Takeaways
- Indian equity market ends negatively due to US tariffs.
- Nifty Pharma drops significantly, impacting investor sentiment.
- Sensex and Nifty indices reflect broader market decline.
- Majority of sectoral indices also closed in negative territory.
- Investors advised to remain cautious amidst global uncertainty.
Mumbai, Sep 26 (NationPress) The Indian equity market concluded the week on a dismal note on Friday, influenced by weak global signals and new US tariffs imposed on specific pharmaceutical imports. Nifty Pharma experienced a decline of 470 points, equating to a 2.14 percent drop.
The Sensex closed the trading day at 80,426.46, reflecting a decrease of 733.22 points, or 0.90 percent. The 30-share index opened slightly lower at 80,956.01 compared to the previous closing of 81,159.68. The index further deepened its losses amid widespread selling, hitting an intraday low of 80,332.41.
Nifty wrapped up at 24,654.70, down by 236.15 points, or 0.95 percent.
“The Indian market endured a significant downturn, mirroring the declines witnessed across Asian markets. Investor confidence was shaken by a new wave of tariffs aimed at the pharmaceutical sector, dragging pharma stocks into negative territory,” analysts commented.
Investors remain wary, with a short-term focus on domestic investment and consumption amidst global volatility, analysts noted.
Among the Sensex stocks, Mahindra and Mahindra, Tata Steel, Eternal, Bajaj Finance, Asian Paint, Sun Pharma, Tech Mahindra, Infosys, HCL Tech, TCS, Bajaj FinServ, BEL, Titan, Hindustan Unilever, Trent, Axis Bank, Bharati Airtel, NTPC, Kotak Bank, ICICI Bank, and PowerGrid closed lower. L&T and Tata Motors managed to end the session in the green.
The majority of sectoral indices closed in negative territory. Nifty IT plummeted by 846 points, or 2.45 percent; Nifty FMCG decreased by 260 points, or 0.47 percent; Nifty Auto fell by 273 points, or 1.02 percent; Nifty Fin Services ended down by 262 points, or 1 percent; and Nifty Bank closed 586 points, or 1.07 percent lower.
The broader market continued to suffer from persistent selling pressure. Nifty Next 50 dropped 1,148 points, or 1.68 percent; Nifty 100 slid by 274 points, or 1.08 percent; Nifty Midcap 100 concluded the session down by 1,177 points, or 2.05 percent; and Nifty Smallcap 100 decreased by 405 points, or 2.26 percent.
Point of View
It is crucial to observe that the Indian market's downturn is reflective of broader global trends and ongoing geopolitical tensions. Investors must navigate these challenges with caution while focusing on resilient domestic sectors.
NationPress
26/09/2025
Frequently Asked Questions
What caused the decline in the Indian stock market?
The decline was primarily driven by weak global cues and new US tariffs on certain pharmaceutical imports, which negatively impacted investor sentiment.
How did Nifty Pharma perform?
Nifty Pharma fell by 470 points, which is a 2.14% decrease, indicating a significant impact from the new tariffs.
What was the closing value of Sensex?
Sensex closed at 80,426.46, down by 733.22 points or 0.90%.
Which sectors faced losses?
Most sectoral indices ended in negative territory, with notable drops in Nifty IT, FMCG, Auto, Fin Services, and Bank.
What should investors focus on now?
Investors should remain cautious and focus on domestic investment opportunities while keeping an eye on global market trends.
