Mumbai: Indian benchmark indices Sensex and Nifty fell sharply on Friday, September 26, extending losses to a sixth consecutive session following heavy selling in pharmaceutical and IT shares. The decline came after US President Donald Trump announced a 100% tariff on branded drugs and a 25% levy on heavy-duty trucks, reigniting concerns over export revenues and market sentiment.

Sensex and Nifty performance

The 30-share BSE Sensex dropped 733.22 points or 0.90% to settle at 80,426.46, hitting a three-week low. During intraday trade, it fell as much as 827.27 points to 80,332.41. The 50-share NSE Nifty declined 236.15 points or 0.95% to 24,654.70, also marking a three-week low.

Over the past six sessions, Sensex has shed 2,587.50 points or 3.16%, reflecting sustained selling pressure. Sectoral indices ended in the red, with bank, capital goods, consumer durables, metal, IT, telecom, pharma, and PSU banks down 1–2%. Both BSE midcap and smallcap indices fell 2%.

Heavy selling in pharma stocks

Pharmaceutical shares bore the brunt of the sell-off after Trump’s tariff announcement on Truth Social, stating: “Starting October 1st, 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.”

The clarification defined “IS BUILDING” as “breaking ground” or “under construction,” allowing exemptions for companies that have started US plant construction.

Following the announcement, the BSE Healthcare index dropped 2.14%. Sun Pharma plunged 5% to a 52-week low of Rs 1,547, Biocon fell 3.3% to Rs 344, and Zydus Lifesciences declined 2.8% to Rs 990.

Broader market impact

The tariff announcement also dragged heavy-duty truck, IT, and other sectors. Key losers from the Sensex basket included Mahindra & Mahindra, Tata Steel, Bajaj Finance, Asian Paints, Sun Pharma, Tech Mahindra, Infosys, TCS, and HCL Tech, while Larsen & Toubro, Tata Motors, ITC, and Reliance Industries were among the few gainers.

Sectoral highlights for the week:

  • Nifty IT fell 8%, breaking a two-week rally
  • Nifty Pharma ended its three-week gain
  • Nifty Bank, Energy, and PSU Bank indices fell, snapping three-week rallies
  • Midcap and Smallcap indices declined 4.5%, marking the worst weekly performance since February 2025

The decline wiped off nearly ₹16 lakh crore from the market-cap of BSE-listed firms for the week.

Global market trends

Major Asian markets closed in negative territory, including South Korea’s Kospi, Japan’s Nikkei 225, Shanghai SSE Composite, and Hong Kong’s Hang Seng. European markets were trading positive, while US equities closed lower on Thursday.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹4,995.42 crore on Thursday, according to exchange data. Global oil benchmark Brent crude dipped 0.27% to $69.23 a barrel.

Conclusion

The combination of US tariffs on pharmaceuticals and heavy-duty trucks, coupled with global market volatility, has weighed heavily on Indian indices. Analysts expect near-term headwinds for sectors exposed to US exports, particularly pharma and IT, while domestic economic trends and policy measures may moderate losses in the medium term.