Indian stock markets witnessed a sharp decline following the announcement of a 26% reciprocal tariff on Indian imports by the United States. The move is part of a broader trade policy that introduces a 10% baseline tariff on all US trade partners from April 5, with higher duties on specific countries.
The Nifty 50 index fell by 0.60% to 23,192.40, while the BSE Sensex dropped 0.61% to 76,153.68. Analysts caution that these tariffs could disrupt global trade, impact domestic economic growth, and weigh on corporate earnings.
Despite the overall market downturn, the pharmaceutical sector showed resilience due to a temporary exemption from the tariffs. Leading the gains, Dr. Reddy’s shares surged 6%, while Gland Pharma saw an impressive 12% increase.
By 10:01 IST, the Sensex was down 352.78 points, settling at 76,264.66, and the Nifty dropped 99.20 points to 23,233.15. Market breadth remained mixed, with 1,755 stocks advancing, 1,295 declining, and 160 remaining unchanged.Meanwhile, the GIFT Nifty, a key indicator of market sentiment, traded at 23,360.50, reflecting a 0.30% drop. Investors remain cautious as the evolving trade policies continue to shape global market trends.
