Sensex and Nifty Tumble as US Tariff Threat Looms Over Pharma Sector

The Sensex and Nifty started in red, extending losses for the fifth day as the Nifty 50 index dipped below key levels. Pharmaceutical stocks suffered significantly following President Trump's announcement of a 100% tariff on branded products. The bearish market anticipates further challenges ahead.

The Sensex and Nifty witnessed a rocky start on Friday, continuing their losing streak as the Nifty 50 index dropped below crucial levels for the fifth consecutive session, reversing more than half of its recent gains. Nifty Pharma took a significant hit, plummeting by 2.42% to an intraday low of 21,445.50. Top pharma stocks like Sun Pharma and Gland Pharma experienced substantial declines, setting new lows.

President Donald Trump's administration has announced intentions to impose a 100% tariff on branded and patented pharmaceuticals by October 2025 unless companies set up manufacturing within the US. Market analyst Ajay Bagga noted the uncertainty stemming from the tariff expansion, which could impact USD 233 billion worth of pharma exports but currently spares Indian generic drugs.

The markets also reacted to the potential impact of these tariffs on Indian exports. Despite the recent pitch from the Trump administration, Indian generic exports remain protected from these measures. Meanwhile, economic conditions complicate efforts to recover, with the US edging towards stagflation and Indian exports facing elevated duties, potentially hitting the GDP.

(With inputs from agencies.)