Indian stock markets witnessed a significant downturn on Friday, with the BSE Sensex dropping over 700 points to close at 83,420 and the NSE Nifty 50 slipping below the critical 24,750 level. This marks a sixth consecutive day of losses for benchmark indices, reflecting rising investor concerns over global trade tensions and domestic economic pressures.
A key trigger for the decline was the announcement by the U.S. administration of new tariffs on branded and patented pharmaceutical imports, set to take effect from October 1, 2025. India’s pharmaceutical exports to the U.S. are valued at over $10 billion annually, and the announcement sparked a sharp reaction among pharma stocks. Leading companies like Sun Pharmaceutical Industries and Natco Pharma fell by 3.4% and 3.2% respectively, dragging down the overall sector by 2.6%.
The information technology sector also faced setbacks. Shares of Tata Consultancy Services (TCS), Wipro, and HCL Technologies declined between 1.5% and 2.2%, following subdued revenue forecasts from global consulting firms such as Accenture. Concerns over changes in the U.S. H-1B visa policy further dampened investor sentiment in the sector, as IT companies heavily rely on skilled manpower for overseas contracts.
Besides pharmaceuticals and IT, metals, energy, and banking stocks also saw pressure. Metal stocks declined as global commodity prices softened, while banking stocks were impacted by rising bond yields and concerns over asset quality. On the other hand, FMCG stocks showed relative resilience, with companies like Hindustan Unilever and ITC posting marginal gains.
Market breadth remained weak, with declines outweighing advances by a ratio of nearly 3:1 on both exchanges. Trading volumes were higher than average, signaling continued selling pressure. Analysts said global uncertainties, especially trade and policy-related developments, are creating volatility for Indian markets. They advised investors to brace for continued choppiness and focus on quality stocks with strong fundamentals.
The sustained weakness in Indian markets reflects a blend of domestic and global headwinds. Unless global trade tensions ease and sector-specific challenges are addressed, the near-term outlook for markets remains cautious, with investors urged to closely monitor policy developments and global cues in the coming weeks.
