Sensex tanks 800 pts, Nifty below 24,650 amid tariff jitters; top reasons

Stock market crash: The Sensex fell 827.27 points, or 1.01 per cent, to an intraday low of 80,332.41, while the Nifty50 dropped 261.4 points, or 1.05 per cent, to 24,629.45 levels.

The benchmark Indian equity indices continued to trade lower on Friday, for the sixth consecutive session, following US President Donald Trump’s latest tariffs targeting pharmaceuticals, kitchen equipment, and heavy trucks.

 

The Sensex fell 827.27 points, or 1.01 per cent, to an intraday low of 80,332.41, before settling 733.22 points or 0.90 per cent lower at 80,426.46 levels.  Likewise, the Nifty50 dropped 261.4 points, or 1.05 per cent, to 24,629.45 levels, before settling 236.15 points or 0.95 per cent lower at 24,654.70 levels. 

Broader markets, too, slipped. The Nifty Midcap 100 and SmallCap 100 indices settled 2.05 per cent and 2.36 per cent lower, respectively. 

 

All sectors ended in the red zone, with Nifty IT leading losses, down 2.45 per cent, followed by Pharma, which fell 2.14 per cent.

 

Key Reason Why Stock Market is Down Today:

 

Trump tariffs 

 

On Thursday (US time), President Trump announced a sweeping set of import tariffs, including a 100 per cent duty on branded and patented pharmaceutical products, effective October 1, 2025. The tariff will be waived only for companies that are actively building pharmaceutical manufacturing facilities in the US. 

 

In a post on Social Truth, Trump said, “Starting October 1, 2025, we will be imposing a 100 per cent tariff on any branded or patented pharmaceutical product, unless a company is building their pharmaceutical manufacturing plant in America.”

 

This led to a massive drop in the pharma stocks today as the index fell as much as 2.5 per cent in intraday deals.

 

According to VK Vijayakumar, chief investment strategist, Geojit Investments Limited, "President Trump’s tantrums with tariffs are resuming with new tariff imposts on patented and branded drugs. 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.”

 

Trump also announced tariffs on other product categories including 50 per cent on kitchen cabinets and bathroom vanities; 30 per cent on upholstered furniture; and 25 per cent on heavy-duty trucks.

 

“Higher tariffs on trucks, upholstered furniture etc. indicates that the Trump administration’s weaponisation of tariffs may continue till US inflation spikes forcing a rethink of this policy,” Vijayakumar added.  

 

Persistent FIIs selling

 

Foreign institutional investors (FIIs) remained net sellers on September 25, offloading ₹4,995 crore in the cash market. Meanwhile, since the start of the week on September 22, FIIs have sold shares worth ₹13,882.45 crore.

 

Vijayakumar said, “Sustained FII selling may keep markets under pressure. Investors can use dips to gradually accumulate high-quality stocks, particularly those driven by domestic consumption.”

 

Technicals 

 

From a technical standpoint, a breach below 24,750 on the Nifty could accelerate the decline toward the 24,600-24,500 zone. The index has now endured six straight sessions of selling pressure, underscoring the prevailing bearish momentum and cautious investor sentiment   

 

“The key floor to watch is 24,550, aligned with the crucial slope support. On the upside, 24,950 – the recent 100-day breakout zone – remains the immediate hurdle, and only a decisive close above this level can trigger a meaningful pullback in sentiment,” said Ponmudi R, CEO of Enrich Money.