Trump’s tariff threats spooked investors. Analysts flagged early warning signals in tech and pharma sectors.
Indian equity markets ended lower on Wednesday as tariff jitters weighed on investor sentiment amid threats of ‘higher tariffs’ from US President Donald Trump. Trade tensions have been rising between the two nations over their trade ties with Russia. The Nifty index ended below the 24,600 mark.
The Reserve Bank of India maintained the status quo on rates in its August review, in line with the market expectations. However, it has revised the inflation forecast for FY26 lower to 3.1%.
On Wednesday, the Sensex closed 166 points lower at 80,543, while the Nifty 50 ended 75 points lower at 24,574. Broader markets too underperformed, with the Nifty Midcap index ending 0.8% lower and the Smallcap index falling 1.1%.
And the retail investor sentiment surrounding the Nifty 50 moved from ‘neutral’ to ‘bullish’ by market close on Stocktwits, amid ‘high’ message volumes.
Stock Moves
Sectorally, barring PSU banks, the rest of the indices ended in the red, led by declines in pharma (-2%) and technology (-1.7%).
Pharma stocks took a knock on the potential tariff hike to 250% on drug imports. Ajanta Pharma, IPCA Labs, Sun Pharma, Alkem Labs, and Zydus Life fell nearly 3%.
Real estate stocks fell after RBI held rates steady: Anant Raj (-3%), Godrej Properties, Sobha, DLF, and Brigade fell over 2%.
Britannia shares ended 4% lower on subdued June quarter (Q1 FY26) earnings. Divis Labs fell 3% and Bharat Forge slipped 2% after management shared a cautious outlook for the year ahead.
Other earnings movers include Uno Minda (-1.7%), Asian Paints (+2%), and Pidilite Industries (+1.5%). BHEL fell 3%, and Hero Moto closed 2% lower ahead of Q1 earnings.
NSDL shares surged 17% on its debut on Dalal Street.
Stock Calls
Godfrey Phillips clocked in another session of gains, rising 10%. Analyst Kavita Agarwal flagged it as a fundamentally strong stock, which is now showing a promising technical setup.
On the weekly chart, it looks bullish, with room to rally towards ₹13,275, which represents 25% upside from current levels. She identified support at ₹9,860, indicating a 8% downside if the stock makes a lower low on the daily chart or fully retraces Wednesday’s candle. On the 75-minute chart, the Relative Strength Index (RSI) was overbought.
Agarwal suggested setting an alert around 40–41 for RSI to catch a potential dip, which could offer a better re-entry point. She concluded that while a short-term dip was possible in Godfrey, it still warranted an inclusion on the ‘bullish watchlist’.
Yogesh Nirwan of Wealth Guru recommended a buy on Bayer Crop above ₹6,250 with a target price of ₹6,350, ₹6,450, and ₹6,800 for a stop loss of ₹6,200. He expects a price and volume breakout soon.
Meanwhile, analyst Kapil Aggarwal has a buy call on Laurus Labs at ₹835-₹845 with a stop loss of ₹815 on a closing basis and a target price at ₹922.5.
Markets: What Next?
Analyst Ashish Kyal noted that the Nifty index has been failing to generate momentum in any direction and testing a crucial zone multiple times, with 24,470 acting as a key support level. On the upside, a break above 24,680 is needed to gain some momentum. Kyal advised traders to avoid positional trades and focus on scalping this range.
Meanwhile, Varun Bhargav of ProfitXResearch flagged that markets are flashing early warning signs, and that technology and pharmaceuticals stand out for potential sharp breakdowns ahead. He maintains a ‘sell on rise’ strategy on these two sectors.
Globally, European markets traded higher, while US stock futures indicate a positive start on Wall Street. Crude oil prices look poised to snap a four-day losing streak, as U.S. President Donald Trump’s continued threats to India to stop buying Russian oil raised concerns over supplies.
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