Sensex Tanks 372 Points, Nifty Tests 23,240 Amid Trump Tariff Announcement

Wall Street futures, along with Asian indices, currencies, and the Nifty futures index GIFT Nifty, plummeted as investors rushed to liquidate their equity holdings

Over the last six months, the pharma index declined nearly 10 per cent as the market entered a corrective phase

Source : ABPLIVE AI

Indian benchmark indices, Nifty 50 and Sensex, opened with a gap-down on Thursday, influenced by 26 per cent reciprocal tariffs announced by US President Donald Trump, which dampened investor sentiment. By 9:20 am, the Sensex had fallen 512.53 points, or 0.67 per cent, to 76,104.91, while the Nifty was down 133.50 points, or 0.57 per cent, at 23,198.85. Among the stocks, 106 advanced, 234 declined, and 22 remained unchanged.

According to the International Monetary Fund (IMF), a 26 per cent tariff could potentially affect India's gross domestic product (GDP) by $30 billion, representing approximately 0.7 per cent of the projected $4.3 trillion GDP India is expected to reach by the end of calendar year 2025.

Additionally, Hong Kong-based brokerage CLSA has suggested that the Nifty Pharma index, which faced persistent selling pressure amid growing investor concerns, may experience a rebound. Over the last six months, the pharma index declined nearly 10 per cent as the market entered a corrective phase. By 9:20 am, the Nifty Pharma index surged 4.4 per cent, with Gland Pharma, Aurobindo Pharma, and Dr. Reddy's Laboratories leading the gains, each climbing by up to 10 per cent.

Global Update

US stock indices closed higher after a volatile trading session on Wednesday. The markets initially dipped but later recovered as investors repositioned themselves in anticipation of US President Donald Trump's detailed tariff announcements. Asian equities saw significant declines, while safe-haven assets surged following US President Donald Trump's announcement of unexpectedly high reciprocal tariffs, raising concerns about global economic growth and inflation.  

Gold hit a new record high on Thursday as investors flocked to safe-haven assets in response to the tariff hike against key trading partners. Oil prices dropped by $2 on Thursday, with traders worried about reduced crude demand amid escalating global trade tensions.  

Foreign Institutional Investors (FIIs) recorded net sales of Rs 1,539 crore on Wednesday, while Domestic Institutional Investors (DIIs) bought shares worth Rs 2,808 crore. FII net short positions fell from Rs 66,578 crore on Tuesday to Rs 62,329 crore on Wednesday.

Rupee Movement

The rupee fell by 26 paise to 85.78 against the US dollar in early trading on Thursday, following US President Donald Trump's announcement of reciprocal tariffs targeting around 60 countries. The US imposed a 26 per cent reciprocal tariff on India, citing New Delhi's high import duties on American goods. This move is part of the Trump administration's broader strategy to reduce the trade deficit and promote domestic manufacturing.