Benchmark indices nosedived for the seventh consecutive session on Friday, with the Nifty settling below the 24,700-mark. The 30-share BSE Sensex lost 733.22 points to close at a 3-week low of 80,426.46. During the day, it declined by 1% to 80,332.41. The 50-share NSE Nifty tumbled 236.15 points to an over three-week low of 24,654.70. The index has been on a decline since September 19, tanking over 3% in six straight trading sessions. Sensex has tumbled by 3.16% in six sessions to Friday.

According to Dr VK Vijayakumar, chief investment strategist at Geojit Investments, President Trump’s tantrums with tariffs are resuming with new tariff imposts on patented and branded drugs. However, India, being an exporter of generic drugs is unlikely to be impacted by this. But perhaps the president’s next target can be generic drugs. This decision may have a sentimental impact on pharmaceutical stocks. 

“Trump is now moving from country-specific tariffs to product-specific tariffs. Higher tariffs on trucks, upholstered furniture etc. indicates that the Trump administration’s weaponization of tariffs may continue till US inflation spikes forcing a rethink of this policy. 

“The sustained FII selling may keep the market under pressure. Investors can utilise dips to slowly accumulate high quality stocks, particularly those that are driven by domestic consumption,” Dr VKV added.

Pharma stocks dive on Trump tariff

Pharma stocks fell on Friday as investors grew concerned about US President Donald Trump's move to impose 100 per cent import tariffs on pharmaceutical drugs from October 1. Shares of Wockhardt Ltd tumbled 9.40 per cent, Indoco Remedies edged lower by 5.35 per cent, Zydus Lifesciences tanked 4.21 per cent, Glenmark Pharma fell by 2.99 per cent, Natco Pharma declined 2.65 per cent, Sun Pharma dropped 2.55 per cent, Lupin went lower by 2.07 per cent, Dr Reddys dipped 1.73 per cent and Aurobindo Pharma (0.57 per cent) on the BSE.