Markets Plunge 0.90% as US Slaps 100% Tariff on Branded Drugs - Here’s What It Means for Your Portfolio
Washington's latest trade bomb sends shockwaves through global markets.
The 100% tariff hammer drops on pharmaceutical imports—triggering immediate sell-offs across traditional sectors. That 0.90% market dip? Just the opening act.
Pharma stocks take direct hit
Branded drug manufacturers face instant margin compression. Supply chain disruptions loom as international suppliers scramble to absorb the cost doubling.
Digital assets weather the storm
While traditional markets tremble, cryptocurrency volumes spike as investors seek hedging alternatives. Another reminder that decentralized finance doesn't care about border taxes.
Regulatory domino effect begins
Trade tensions escalate into financial markets—because nothing says 'economic stability' like sudden 100% import taxes. The Fed's next move just got infinitely more complicated.
Smart money already positioning for volatility. Because when governments play tariff roulette, your portfolio becomes the bullet.
US tariffs impact on pharma stocks
The pharmaceutical sector bore the brunt of the selling pressure following the tariff announcement, with the BSE Healthcare index correcting approximately 5 per cent for the week. IT stocks continued their downward spiral, with the BSE IT index plummeting 7 per cent during the week after Accenture’s weaker guidance and job cuts highlighted slowing IT spending. “Meanwhile, Accenture’s weaker guidance and job cuts highlighted slowing IT spending, with AI-driven growth failing to meet expectations, prompting a broad sell-off in tech shares,” noted Vinod Nair, Head of Research at Geojit Investments Limited.
Market breadth remained severely weak with 3,100 stocks declining against just 1,041 advances on the BSE, where 4,280 stocks were traded. A total of 154 stocks hit 52-week lows compared to 132 touching 52-week highs, while 6 stocks were locked in lower circuits against 12 in upper circuits.
Among Nifty 50 constituents, Larsen & Toubro emerged as the top gainer, rising 2.71 per cent to ₹3,743 from its previous close of ₹3,644.40. Tata Motors gained 1.45 per cent to ₹673.95, while ITC advanced 1.22 per cent to ₹405. Eicher Motors and Reliance Industries rounded out the top five gainers with increases of 0.70 per cent and 0.48 per cent respectively.
On the losing side, IndusInd Bank led the declines, plummeting 3.88 per cent to ₹712 from ₹740.75. Mahindra & Mahindra fell 3.68 per cent to ₹3,400, while Tata Steel dropped 2.92 per cent to ₹167.35. Bajaj Finance declined 2.74 per cent to ₹985, and another stock in the losers’ list shed 2.81 per cent.
The broader markets witnessed even steeper declines, with Nifty Midcap 100 tumbling 2.05 per cent to 56,378.55, while the Next 50 index fell 1.68 per cent to 67,144.95. Banking stocks remained under pressure, with Nifty Bank declining 1.07 per cent to 54,389.35 and Nifty Financial Services dropping 1.00 per cent to 25,985.25.
“Risk off sentiment continued in equity markets, as markets extended losing streak for sixth straight session on across-the-board selling amid Trump’s decision to impose 100 per cent tariff on branded and patented drugs that further soured investors’ sentiment,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd. “The market is already reeling under multiple pain-points like strong FII selling, US-India trade uncertainty, depreciating rupee and bullion’s rising appeal, which is making investors jittery.”
Foreign institutional investors continued their selling spree, with outflows of ₹13,882 crores recorded in the last four sessions, adding to the market pressure. The Indian rupee remained weak, trading flat NEAR 88.71 against the dollar as FII selling pressure persisted. “Rupee traded flat near 88.71 as the dollar stayed rangebound, with yesterday’s stronger US GDP numbers keeping global sentiment cautious,” explained Jateen Trivedi, VP Research Analyst at LKP Securities.
Gold shines as Safe-Haven asset
Gold prices provided some relief to investors, trading firm at ₹1,14,000 with marginal gains of ₹130 as global uncertainty drove safe-haven demand. “Gold prices traded firm at ₹1,14,000 with marginal gains of ₹130 as Comex Gold held steady, while the dollar stayed slightly positive and rupee remained flat near 88.71,” Trivedi added.
The weekly performance painted an even grimmer picture, with the Nifty declining 2.65 per cent and the Sensex dropping 2,200 points. “This week, the overall market breadth of the Indian equity markets was negative as it factored in the US announcement with respect to H1B visas and the pharma sector,” said Shrikant Chouhan, Head Equity Research at Kotak Securities.
Caution sentiment prevails
Technical analysts expressed caution about the near-term outlook. “Markets remained under pressure and extended their losing streak for the sixth straight session,” said Ajit Mishra, SVP Research at Religare Broking Ltd. “The Nifty now approaching its key support near the 200 DEMA around 24,400. Given this backdrop, we recommend adopting a cautious approach—focusing on fundamentally strong stocks while avoiding aggressive directional bets until clearer signals emerge.”
Looking ahead, market participants will closely watch for policy clarity and management commentary in the coming days to assess the potential impact on sectoral earnings and global trade dynamics. With the monthly futures and options expiry approaching next week, elevated volatility is expected to continue. “For the upcoming week, we expect the Nifty to trade within a broader range of 24,300 to 25,100,” said Nilesh Jain, Head of Technical Research at Centrum Broking Ltd.
Published on September 26, 2025
Companies to follow- Bajaj Finance Ltd
