Indian Markets Slip As Trump Announces Tariffs On Pharma Imports

Indian benchmark indices opened in negative territory on Friday, following US President Donald Trump’s announcement of tariffs on pharmaceutical imports and continued selling by foreign institutional investors.

As of 9:25 AM, the Sensex fell 388 points, or 0.48 per cent, to 80,771, while the Nifty dropped 119 points, or 0.48 per cent, to 24,771.

Shares of Indian and Asian pharmaceutical companies declined sharply after Trump announced tariffs of up to 100 per cent on branded and patented pharmaceutical drugs, effective from 1 October 2025.

In addition to pharmaceuticals, Trump imposed a 50 per cent duty on kitchen cabinets and bathroom vanities, 30 per cent on upholstered furniture, and 25 per cent on heavy trucks.

Pharma Exports and Market Impact

The United States accounts for 31 per cent of India’s pharmaceutical exports, making it the largest export market for Indian pharma companies.

Analysts noted that while generic drugs may remain unaffected for now, the announcement created a negative sentiment in the market, particularly for pharma stocks.

Sectoral indices reflected the impact, with Nifty Pharma leading losses, down 2.39 per cent, while Nifty PSU Bank fell 1.11 per cent and Nifty Healthcare declined 2.20 per cent. Broad-cap indices, including Nifty Midcap 100 and Nifty Smallcap 100, also slipped by 0.18 and 0.20 per cent, respectively.

Among major Nifty stocks, Cipla, Dr Reddy’s Laboratories, Titan Company, Asian Paints, and Bajaj Finance posted losses, whereas L&T, Hero MotoCorp, Hindalco, Tata Steel, and ONGC registered gains.

Technically, Nifty closed decisively below the 25,000 mark, signalling a growing downside bias. Analysts placed resistance around 25,000–25,050, while immediate support lies in the 24,700–24,750 zone.

Global markets added to the pressure, with US indices ending in the red overnight: Nasdaq fell 0.50 per cent, S&P 500 dropped 0.50 per cent, and the Dow lost 0.38 per cent.

Asian markets also traded lower, with China’s Shanghai index down 0.18 per cent, Shenzhen 0.79 per cent, Japan’s Nikkei 0.43 per cent, Hong Kong’s Hang Seng 0.79 per cent, and South Korea’s Kospi 2.52 per cent lower.

Foreign and Domestic Investor Activity

Foreign institutional investors (FIIs) sold equities worth Rs 4,995 crore on Thursday, while domestic institutional investors (DIIs) acted as net buyers with purchases totalling Rs 5,000 crore.

Market participants highlighted that the global economic environment is becoming increasingly challenging as the US economy shows signs of slowing growth, rising unemployment, and inflation moving upward from its trough, creating a cautious backdrop for Indian equities.

The combination of US tariffs and global economic concerns set the tone for a subdued start to the trading session, with investors closely monitoring further developments in international trade and domestic market trends.

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