Indian stock markets ended sharply lower on Monday, with the Sensex falling over 700 points and the Nifty slipping below the 24,000 mark. The decline was driven by a broad sell-off in pharmaceutical stocks after US President Donald Trump announced a phased tariff framework for imported generic medicines.
Under the new plan, drugmakers will be given a two-year transition period before higher duties are imposed. This move has raised concerns among investors about the profitability of Indian pharmaceutical companies that export to the US market. The pharma sector was the worst hit, dragging down the overall market.
Analysts said the uncertainty over future tariffs added to selling pressure. Other sectors also witnessed losses, but the pharma index fell the most. The benchmark indices had been volatile in recent sessions, and today's drop was one of the sharpest in weeks.
Market participants are now watching for further details on the tariff structure and its impact on Indian drug exports. The US is a major market for Indian generic medicines, and any increase in duties could affect earnings for many companies.
The broader market also reflected the negative sentiment, with most stocks ending in the red. The rupee weakened against the dollar amid the sell-off.