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The BSE Sensex tumbles 585.67 points to settle at 80,599.91, while the NSE Nifty declines 203 points to 24,565.35.
Stock Market Today.
Why Did Markets Fall Today? The BSE Sensex tumbled 585.67 points to settle at 80,599.91, while the NSE Nifty declined 203 points to 24,565.35. This is the second day of decline in the domestic market in a row. Experts say the markets are pressured by renewed US tariff threats and punitive duties that could undermine India’s global trade competitiveness.
The Nifty Pharma index led the losses with a 3.3% drop, followed by the Nifty Metal index (down 1.97%) and the IT Index (lower by 1.85%).
Why Were Markets Down Today?
Here are some of the key factors why markets were down today for the second consecutive day:
Pressure on Pharma Stocks: The Nifty Pharma index slipped 3.3%, posting its third straight day of declines. Sun Pharma led the downturn with a 4.5% slide, followed by losses in Aurobindo Pharma, Gland Pharma, Cipla, Granules India, and Lupin. The slump followed US President Donald Trump’s letters to 17 global drugmakers, urging them to slash drug prices in the US to match international benchmarks. The communication also recommended implementing a Most Favored Nation (MFN) pricing framework within 60 days, raising regulatory concerns for the sector.
Persistent FII Outflows: Foreign Institutional Investors (FIIs) remained heavy sellers in Indian equities, offloading shares worth Rs 5,588.91 crore on Thursday. The sustained exodus of foreign capital continues to exert downward pressure on domestic indices.
US Tariffs on Indian Exports: Market sentiment took a hit after US President Donald Trump signed an executive order titled ‘Further Modifying The Reciprocal Tariff Rates’, which imposes a 25% “Reciprocal Tariff, Adjusted” on Indian goods. While nearly 70 countries were impacted by the revised tariff structure, the order notably left out any new sanctions tied to India’s procurement of Russian energy or defence equipment, previously hinted at.
Weak Global Cues: Asian markets traded lower across the board, with benchmarks in Japan, South Korea, China, and Hong Kong slipping into the red. The downbeat mood followed overnight losses on Wall Street, while tepid US futures further dampened risk appetite across the region.
Rise in Market Volatility: The India VIX, often dubbed the fear gauge, rose 2% to 11.77, indicating a spike in investor anxiety. Elevated volatility typically prompts traders to adopt a more cautious approach, limiting aggressive positions and participation.
What’s Next?
Technical experts said a further decline is likely if the Nifty slips below 24,400. Otherwise, a recovery can be expected.
Rupak De, senior technical analyst at LKP Securities, said, “The Nifty witnessed another sharp decline as it failed to reclaim the 200-DMA on the hourly chart, despite a strong recovery on Thursday. Throughout the day, the index remained below the 50-EMA on the hourly timeframe. On the daily chart, it has broken below the recent consolidation support at 24,600. Sentiment remains weak, with the potential for the correction to extend towards 24,400-24,450. A further decline is likely if it slips below 24,400; otherwise, a recovery can be expected. On the higher side, resistance is seen at 24,600–24,650 and 24,850.”
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
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