Indian equity benchmark indices closed lower on Wednesday due to surging crude oil prices and fresh concerns over US tariffs on generic drug imports. The BSE Sensex fell by 720.51 points, while the Nifty 50 dropped by 191.45 points.
Market Drivers and Sectoral Performance
Vinod Nair, Head of Research at Geojit Investments Limited, said, “Indian equities ended lower as the ongoing US-Iran standoff and Houthi-led disruptions to key global shipping routes heightened concerns over potential oil supply disruptions, driving crude prices higher and weakening the rupee.” He added that the risk-off sentiment due to renewed concerns over domestic inflation overshadowed better-than-expected business updates and encouraging first-quarter earnings. Rate-sensitive sectors such as realty, banking and consumer durables led the decline, while pharmaceutical stocks came under pressure amid renewed uncertainty over proposed US tariff measures on pharmaceutical exports. Nair said that despite the cautious market environment, FMCG and auto stocks emerged as relative outperformers, supported by strong quarterly earnings from sector leaders.
US Tariffs on Generic Drugs
Market sentiment was also impacted after US President Donald Trump announced plans to impose tariffs of up to 200 per cent on generic drug imports from 2028. Under the announcement, generic drugs imported into the US will continue to attract zero per cent tariffs for two years from August 1, 2026, after which the tariff will rise to 100 per cent for one year and 200 per cent thereafter. The announcement put pressure on Indian pharmaceutical stocks during the trading session.
Sectoral Indices Performance
Among the sectoral indices on the NSE, Nifty Auto gained 0.20 per cent and Nifty FMCG rose 0.74 per cent. All other sectoral indices closed in the red. Nifty IT declined 1.56 per cent, Nifty Media lost 2.67 per cent, Nifty Metal fell 0.57 per cent, Nifty Pharma dropped 1.31 per cent, while Nifty PSU Bank declined 1.89 per cent.
Crude Oil and Rupee Update
At the time of reporting, Brent crude oil prices had surged more than 4 per cent to USD 95.30 per barrel. The Indian rupee was trading at Rs 96.54 per US dollar.
Analyst Outlook
Riyank Arora, Associate Vice President – HNI & Derivatives at Hedged.in, said today’s decline was driven by broad-based profit booking and cautious market sentiment. He said the medium-term trend remains constructive as long as key support levels hold, and advised traders to remain selective, avoid aggressive long positions and consider a buy-on-dips approach near strong support zones with strict risk management.
Asian Markets Overview
In other Asian markets, Japan’s Nikkei 225 index declined 0.10 per cent, Hong Kong’s Hang Seng index fell 1.04 per cent, while Singapore’s Straits Times gained 1.24 per cent and South Korea’s KOSPI advanced 0.73 per cent. (ANI)(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)