Sensex tumbles over 300 points amid US tariff concerns
What's the story
India's benchmark equity indices, the Sensex and Nifty, witnessed a sharp decline today. The fall was mainly due to weak global cues, continued foreign fund outflows, and concerns over US tariff measures. At around 2:35pm the Sensex had lost 318 points or 0.39% to trade at 80,867.56 while the Nifty was down 120.40 points or 0.49% at about 24,648.
Tariff impact
Trump's executive order hits investor sentiment
Investor sentiment took a hit after US President Donald Trump signed an executive order titled 'Further Modifying The Reciprocal Tariff Rates.' The order imposes a 25% "Reciprocal Tariff, Adjusted" on Indian exports. It covers tariff changes for nearly 70 countries but does not mention additional penalties earlier hinted at for India's purchase of Russian defense and energy equipment.
Market pressure
FIIs continue their selling spree
Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth ₹5,588.91 crore on Thursday. This sustained capital outflow has put more pressure on domestic markets. Adding to the woes are weak Asian markets and a negative closing on Wall Street. US futures also indicate a subdued start, further dampening investor confidence in the Indian stock market.
Volatility index
India VIX rises by 2%
The India VIX, a measure of market volatility, rose by 2% to 11.77. A rising VIX indicates increased uncertainty and risk aversion among traders, often leading to cautious positioning and reduced participation in the market. This rise further highlights the current turbulent state of India's benchmark equity indices amid US tariffs.
Pharma impact
Nifty Pharma index falls over 2. palak 8%
The Nifty Pharma index fell over 2.8%, marking its third consecutive session of losses. Sun Pharma led the fall with a 4% decline, followed by Aurobindo Pharma, Gland Pharma, Cipla, Granules India, and Lupin. The decline was fueled by Trump's letters to 17 major global pharmaceutical firms asking them to bring down drug prices in the US to international levels within 60 days.