Mkts decline for 3rd day on oil surge; pharma tariff worries

Benchmark indices Sensex and Nifty tumbled nearly 1% on Wednesday, taking losses to the third consecutive day following a sharp spike in crude oil prices and selling in bank stocks. The 30-share BSE Sensex tanked 715.06 points, or 0.92%, to settle at 76,755.05. During the session, it slumped 828.92 points, or 1%, to 76,641.19. 

The 50-share NSE Nifty declined 191.45 points, or 0.79%, to end at 23,996.25.  The BSE MidCap Select index tumbled 1.33% and the SmallCap Select index declined 1.16%.  Vinod Nair, Head of Research at Geojit Investments Ltd, stated that Indian equities ended lower as the ongoing US-Iran standoff and Houthi-led disruptions to key global shipping routes heightened concerns over potential oil supply disruptions, driving crude prices higher and weakening the rupee. 

From the Sensex pack, InterGlobe Aviation, Infosys, State Bank of India, UltraTech Cement, ICICI Bank, and Axis Bank were among the major laggards. Hindustan Unilever, NTPC, Power Grid, and Titan were among the winners. 

Among sectors, realty tanked 2.62%, services 1.97%, PSU bank 1.83%, focused IT 1.73%, MidSmall private banks quality tilt 1.63%, IT 1.47%, and the private banks index 1.42%. FMCG emerged as the only winner.                             

Pharma stocks close lower

Pharmaceutical stocks declined on Wednesday, with Lupin tumbling over 4%, after US President Donald Trump announced plans to impose 100% tariffs on generic medicine imports from August 2028 for one year and 200% thereafter. India is the largest exporter of generic drugs to the US. Shares of Lupin tanked 4.21%, Aurobindo Pharma declined 1.99%, Dr Reddy's Laboratories fell 1.95%, Glenmark Pharma fell 1.49%, Alkem Laboratories declined 1.43%, Cipla fell 1.08%, Sun Pharma fell 0.98%, and Biocon declined 0.57% on the BSE. Trump said the objective of this policy is to protect the people of the United States.