Sensex Dips Below 81,000 Amid Trump's 100% Tariffs on Branded Drugs; Nifty Falls to 24,770

This downturn comes on the heels of US President Donald Trump's announcement of a 100% tariff on branded or patented medicines, effective from October 1, 2025, sending shockwaves through the pharma sector.

Pharma stocks bore the brunt of the sell-off, with the sector index plunging about 2%. Major players like Sun Pharma, Cipla, Aurobindo Pharma, Lupin, Zydus Lifesciences, and Dr. Reddy's Laboratories saw declines of up to 4%. Experts attribute this to India's heavy reliance on pharmaceutical exports to the US, where generics account for around 40% of shipments. Trump's push for domestic manufacturing could disrupt supply chains, impacting Indian exporters significantly.

Out of the 30 Sensex constituents, 22 stocks were in the red, reflecting broad-based weakness. The previous session on September 25 saw the Sensex close 556 points lower at 81,160 and Nifty down 166 points at 24,891. Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth Rs.4,995.42 crore on Wednesday, marking the highest net outflow in recent months. In contrast, Domestic Institutional Investors (DIIs) bought shares worth Rs.5,103.01 crore, providing some cushion.

Asian markets mirrored the cautious sentiment. Japan's Nikkei fell 0.41% to 45,566.58, Hong Kong's Hang Seng dropped 0.61% to 26,323, and China's Shanghai Composite eased 0.18% to 3,846. South Korea's Kospi remained flat at 3,382. US indices also closed lower on September 25, with the Dow Jones down 0.38% at 45,947, Nasdaq slipping 0.50%, and S&P 500 declining 0.50%.

Market analysts warn of prolonged volatility due to geopolitical tensions and tariff hikes. Investors are advised to monitor pharma sector developments closely, as Trump's policies could reshape global trade dynamics. Despite the dip, opportunities in resilient sectors like IT and consumer goods may emerge for long-term gains.