Indian equities remained under pressure on Wednesday, with Sensex and Nifty extending losses through the afternoon session as selling intensified in pharmaceutical stocks on US tariff proposal and weakness spread across the broader market.
Key Highlights
- Sensex and Nifty declined as proposed US tariffs triggered heavy selling in pharmaceutical sector stocks.
- Investor sentiment weakened amid concerns higher US tariffs could impact Indian pharma exports and earnings outlook.
The BSE Sensex was down 776.07 points, or 1%, at 76,694.04. The Nifty 50 declined 222.60 points, or 0.92%, to 23,965.10, falling below the 24,000 mark during the session. The market had opened on a weak note, with the Sensex starting the day at 77,081, lower by nearly 388 points, while the Nifty opened 90 points lower at 24,097. Selling picked up within the first hour of trade, and neither index managed to recover meaningfully.
The sharpest fall came in pharmaceutical stocks after US President Donald Trump proposed a phased tariff on imported generic medicines, as part of an effort to encourage drug manufacturing within the United States. The announcement triggered selling across the sector, with investors assessing the possible impact on Indian drugmakers with a sizeable presence in the US market. The Nifty Pharma index slipped close to 2% during the session, making it the weakest-performing sector on the NSE. The weakness in pharma stocks also pulled the broader healthcare index lower.
Another factor weighing on markets was a rise in crude oil prices. Oil gained after geopolitical tensions in West Asia escalated again, raising concerns over global supply. For India, which depends heavily on crude imports, higher oil prices are closely watched because they can increase input costs for businesses and put pressure on inflation. The combination of rising oil prices and uncertainty around the proposed US tariff kept investors cautious through the session.
Also Read: Sensex and Nifty End Lower as Oil Surge Hits Market Sentiment
The decline was not restricted to one sector. The Nifty Realty index fell more than 1.5%, while PSU Bank, Financial Services, IT, Metal, and Oil & Gas indices also traded in negative territory. Banking and financial stocks, which had supported the market in recent sessions, also witnessed profit booking. The Nifty Auto index stood out as the only major sectoral gainer, supported by buying in select automobile stocks following recent earnings updates.
Midcaps and Smallcaps Also Under Pressure
The broader market mirrored the weakness in Sensex and Nifty. The Nifty Midcap 100 was down around 0.65%, while the Nifty Smallcap 100 declined nearly 1%, showing that selling was spread across the market rather than confined to large-cap stocks. At the same time, India VIX climbed above 12.9, rising more than 2.5% during the day — reflecting a more cautious approach among traders as global uncertainties resurfaced.
Focus Shifts to Global Developments
For the market, the immediate trigger came from overseas developments rather than domestic news flow. The proposed tariff on imported generic medicines has put pharmaceutical stocks under pressure because of their dependence on exports to the US, while the rise in crude oil prices has added another global variable that investors will need to watch closely in the days ahead.
