Sensex Falls 280 Points, Nifty at 23,250 as Pharma, PSU, and Power Stocks Gain

The Indian stock market witnessed volatile trading on Thursday, with the benchmark Sensex falling by 280 points while Nifty hovered around 23,250. The market remained under pressure due to weakness in IT stocks, but resilience was seen in pharmaceutical, PSU, and power stocks, which outperformed. Leading the losses on the Nifty were HCL Technologies, Tech Mahindra, TCS, Infosys, and Bajaj Auto, while gainers included Sun Pharma, Cipla, Shriram Finance, Power Grid Corp, and NTPC. Meanwhile, the BSE Midcap and Smallcap indices traded flat.

• Sensex declined 280 points, while Nifty traded near 23,250.

• IT stocks dragged the market, with Tech Mahindra and Infosys among the worst performers.

• Pharma, PSU, and power stocks gained amid sectoral resilience.

• BSE Midcap and Smallcap indices remained largely unchanged.

Sensex Stages Strong Recovery Amid Tariff Exemptions and Market Resilience

Despite opening on a weak note, Sensex and Nifty recouped most of their losses, staging a sharp intraday recovery. The Sensex bounced back nearly 700 points from the day’s low, helped by a rally in pharmaceutical stocks and easing crude oil prices. This sharp turnaround was driven by key global and domestic developments, including the exemption of pharmaceutical products from new US reciprocal tariffs and India’s relatively lower tariff burden.

• Sensex rebounded by nearly 700 points from its intraday low.

• Nifty gained 160.7 points from its lowest level, touching 23,306.50.

• The recovery was aided by relief in US tariffs on pharma exports and declining crude oil prices.

• Investors found comfort in India’s relatively lower tariff exposure compared to regional peers.

Pharmaceutical Stocks Rally as US Exempts Drug Exports from New Tariffs

A key trigger for the market recovery was the decision by the White House to exclude pharmaceutical products from its list of reciprocal tariffs. This development came as a relief for Indian pharmaceutical companies, which have significant exposure to the US market. Following the announcement, the Nifty Pharma index surged over 4 percent, with notable gains in stocks such as Gland Pharma, Aurobindo Pharma, and Dr Reddy’s Laboratories, which rose up to 10 percent.

Experts believe this exemption underscores the US’s recognition of India’s crucial role in the global generic drug supply chain. Indian pharmaceutical companies supply a large portion of affordable generics to the US, and this move reduces the risk of disruption in trade. Analysts suggest that this will sustain investor interest in the sector, especially for firms with a strong US presence.

• Nifty Pharma index jumped over 4 percent, reflecting strong sectoral interest.

• Stocks such as Gland Pharma and Aurobindo Pharma gained up to 10 percent.

• The exemption is expected to sustain momentum in pharma stocks in the near term.

• The US move acknowledges India’s role as a key supplier of affordable medicines.

India’s Tariff Burden Lower Than Other Asian Exporters

Another major factor supporting the market was India’s relatively lower tariff burden compared to its Asian peers. The US imposed a 26 percent reciprocal tariff on Indian goods, which is significantly lower than the 54 percent imposed on China, 46 percent on Vietnam, and 37 percent on Bangladesh. This differential provides India with a competitive edge in global exports, particularly in sectors like textiles and manufacturing.

Market observers point out that the impact of these tariffs on India’s economy will be minimal, with an estimated GDP hit of only 0.1 percent. Meanwhile, steeper tariffs on China and Vietnam could divert trade flows in India’s favor, helping domestic exporters capture a larger share of the global market.

• US imposed a 26 percent reciprocal tariff on Indian goods, lower than on China and Vietnam.

• India’s relatively lower tariff burden provides an edge in global trade.

• Sectors like textiles and manufacturing could benefit from trade diversions.

• The impact on India’s GDP is estimated to be minimal at just 0.1 percent.

Oil Prices Decline, Supporting Market Sentiment

Another positive trigger for the market recovery was the decline in global crude oil prices, which eased inflation concerns and supported investor sentiment. Brent crude futures dropped by 2.63 percent to $72.98 a barrel, while US West Texas Intermediate (WTI) crude fell 2.76 percent to $69.73.

India, being a net importer of oil, benefits from lower crude prices, as it reduces the import bill, lowers fuel costs, and helps keep inflation under control. This is especially critical given the recent volatility in global commodity prices, which had put pressure on India’s trade balance.

• Brent crude fell by 2.63 percent, while WTI crude declined by 2.76 percent.

• Lower oil prices reduce India’s import bill and inflationary pressures.

• The decline in crude prices provided a positive sentiment boost to equity markets.

• Sectors like aviation, logistics, and consumer goods benefit from lower fuel costs.

Rupee Strengthens as Dollar Volatility Increases

The Indian rupee also staged a recovery against the US dollar, trading at 85.62 compared to the day’s opening of 85.78. The dollar witnessed increased volatility as global investors sought refuge in safe-haven assets like the Japanese yen and Swiss franc amid rising trade tensions following the US’s aggressive tariff moves.

A stronger rupee helps control imported inflation, particularly for commodities like crude oil, which are priced in dollars. Additionally, a stable rupee is beneficial for sectors reliant on global supply chains, including pharmaceuticals and technology.

• The Indian rupee strengthened to 85.62 against the US dollar.

• The US dollar faced volatility as investors shifted to safe-haven currencies.

• A stable rupee helps control imported inflation and benefits key industries.

• The currency movement reflected global uncertainty over trade policies.