The Indian stock market opened lower on the 26th of September 2025, as major global events continued to influence the market’s performance. The Sensex, which tracks the performance of the 30 largest companies listed on the Bombay Stock Exchange (BSE), fell below 80800 points, losing over 400 points. Similarly, the Nifty 50, which tracks the top 50 companies listed on the National Stock Exchange (NSE), dropped by 118 points, trading at 24771.
The reason for this significant dip in the market can be traced to the announcement by U.S. President Donald Trump regarding new tariffs on pharmaceutical products. Trump announced that starting from October 1st, 2025, there would be a 100% tariff on branded or patented pharmaceuticals unless the companies have manufacturing plants in the United States. This news caused a sharp drop in the shares of Indian pharmaceutical companies such as Sun Pharma, Cipla, Lupin, and others, with some falling more than 3%. The Nifty Pharma index itself saw a decline of 2.6%. Other Indian stocks that faced losses included Asian Paints, Infosys, and Tech Mahindra, with declines between 1.38% and 2.69%.
US President’s Tariff Announcement Hits Pharma Stocks
At 9:45 AM, Sun Pharmaceutical Industries, Lupin, Natco Pharma, Laurus Labs, and several other Indian pharmaceutical companies witnessed a sharp drop of more than 3%. The market sentiment was negatively impacted after President Trump’s announcement. The market continued to see losses as the tariff implications on the pharmaceutical sector took center stage. The Nifty Pharma index slipped 2.6%, with the shares of companies like Natco Pharma, Laurus Labs, Sun Pharmaceuticals, Glenmark Pharma, IPCA Laboratories, and Biocon dropping over 3%.
The Sensex and Nifty Struggle Amid Global Pressures
Earlier in the day, the Sensex opened with a loss of 203 points, starting at 80956, while the Nifty 50 opened at 24818, marking a 72-point drop. This was the sixth consecutive day of market declines. The primary cause for the market’s struggle was the global economic uncertainty, which was further compounded by Trump’s decision to impose new import tariffs on drugs, furniture, and heavy trucks. The new tariffs are expected to negatively affect various sectors, and the ripple effect was felt across the Indian stock market.
Pharmaceuticals and Other Sectors Hit Hard
The pharmaceutical sector was undoubtedly the hardest hit, with major companies facing sharp losses. Shares of companies like Sun Pharma, Cipla, Lupin, and Natco Pharma were down by over 3% as investors feared the impact of the tariff announcement on their businesses. Meanwhile, other major stocks, such as Infosys and Tech Mahindra, also experienced losses ranging from 1.5% to 2.5%. These stocks were among the top losers in the Nifty index, contributing to the overall market decline. The Nifty’s fall to the 24771 mark reflected a 118-point decrease, with investors reacting to the uncertain global economic conditions.
Global Market Trends and Their Impact on India
The U.S. stock market also experienced a downtrend the previous day. The Dow Jones Industrial Average and Nasdaq both saw a decline of 0.38% and 0.50%, respectively. This downward trend was primarily driven by stronger-than-expected economic data, which caused concerns about the Federal Reserve possibly slowing down its interest rate cuts. This shift in expectations contributed to the weakening market sentiment globally.
Asian markets followed suit, showing similar signs of weakness. Japan’s Nikkei 225 index fell by 0.28%, while South Korea’s Kospi index plunged by 1.54%. Hong Kong’s Hang Seng index also signaled a weaker start, adding further pressure on global market performance. All these indicators pointed to an overall negative outlook for the global financial market, which in turn affected the Indian market as well.
Economic Indicators from the U.S. Show Mixed Results
Despite the drop in the stock market, some of the economic indicators from the United States showed positive growth. The GDP growth for the second quarter came in at 3.8%, surpassing previous estimates of 3.3%. Additionally, the number of new unemployment claims dropped to 218,000, which was lower than expected. The orders for durable goods in August also rose by 2.9%, indicating that manufacturing demand was stronger than anticipated.
While these numbers provided some optimism, they also led to concerns about future interest rate cuts by the U.S. Federal Reserve. This uncertainty regarding U.S. monetary policy added further complexity to the global economic outlook.
Trump’s Tariff Announcement and Its Long-Term Effects
The tariff announcement by U.S. President Donald Trump had significant consequences for various industries, including the pharmaceutical sector. Trump revealed that, starting from October 1st, the U.S. would impose a 100% tariff on branded or patented drugs, unless companies manufacture these drugs within the U.S. This move, while aimed at protecting American industry, caused panic among Indian pharmaceutical companies, many of which rely heavily on exports to the U.S.
The announcement was particularly detrimental to companies like Sun Pharma, Cipla, Lupin, and others, which are major players in the pharmaceutical export business. Shares of these companies took a significant hit, and analysts predict that the sector might continue to struggle until the full impact of these tariffs becomes clear. Investors reacted strongly to this news, causing widespread declines in pharmaceutical stocks on both the BSE and NSE.
Performance of Accenture and Other Global Companies
On the positive side, Accenture, a global consulting company, reported a 7% increase in revenue for the June-August quarter, reaching $17.60 billion, which was above expectations. However, the company’s forecast for the following year’s growth rate was slightly lower than analysts had predicted, which dampened the enthusiasm surrounding the company’s performance.
Gold and Dollar Performance Amid Market Uncertainty
The stronger-than-expected economic data from the U.S. also led to a stronger U.S. dollar. This, in turn, caused a dip in the price of gold, as investors moved away from safe-haven assets. Despite the drop, gold was still up by 1.7% for the week. The stronger dollar further weighed on investor sentiment, as many chose to hold onto more liquid assets rather than precious metals.
Market Outlook for the Coming Days
Looking ahead, the Indian stock market is likely to continue facing challenges in the coming days due to the uncertainty surrounding global economic conditions. The impact of the new tariffs on the pharmaceutical sector is expected to weigh heavily on the market, and further losses in this sector may lead to broader declines in the overall market. However, if global economic indicators improve or if the U.S. Federal Reserve signals more accommodative policies, there could be a reversal in market sentiment.
For now, investors are advised to exercise caution and keep a close eye on global developments, particularly the U.S. economic data and policy changes. The tariff imposition by President Trump could have far-reaching effects, and its consequences on Indian stocks will likely continue to unfold in the coming weeks.
The stock market on September 26, 2025, is facing a volatile period, with key sectors like pharmaceuticals taking a significant hit due to the tariff announcement. The global economic slowdown, combined with uncertainty surrounding the U.S. Federal Reserve’s actions, is creating a challenging environment for investors. As the market continues to react to these external factors, it is crucial for investors to remain vigilant and stay updated on any further developments.
