Dalal Street Feels The Heat From Trump Tariffs — Pharma Stocks Lead Slide In Early Trade

Indian equity markets opened lower on Friday, following losses in the previous session after U.S. President Donald Trump announced a 25% trade tariff on Indian goods. Trump confirmed the tariff rates through an executive order signed on Thursday.

At 9:50 a.m. IST, the Nifty 50 index was down 0.27% at 24,701.55, while the BSE Sensex was also down 0.27% at 80,965.07. All major sectoral indices were in the red, save FMCG, Media, and Realty.

The Nifty Pharma index was the biggest laggard on Friday. Pharmaceutical companies have a considerable exposure to U.S. markets and are among the most affected by the tariffs.

Sun Pharmaceuticals extended Thursday’s losses and was down 3.6% at ₹1,645. Weak earnings and tariff uncertainties weakened investor sentiment. Aurobindo Pharma and Lupin were down 3.2% and 2.3%, respectively.

Royal Enfield motorcycle maker Eicher Motors was the Nifty index’s top gainer. The stock was up 3.3% at ₹5,648 after posting a 9.4% increase in Q1 profit. Revenue jumped 14.8% to ₹5,041.8 crore.

Shares of Hindustan Unilever were up 2.9% at ₹2,592.40, extending Thursday’s gains after the company reported a 5.6% rise in net profit to ₹2,756 crore.

Food delivery company Swiggy fell 3.3% to ₹390 after its Q1 loss widened to ₹1,197 crore.

Restaurant Brands Asia, which operates fast food chains including Burger King and Popeye’s in India, climbed 3% to ₹83.92, following a narrower Q1 loss, supported by new offerings and store expansions.

Analyst Views

If the Nifty index moves toward the Gann level of 24,728 and reverses above 24,790, SEBI-registered research analyst Ashish Kyal recommends long positions for a quick scalping target of 24,860 - 24,920. However, a 15-minute close below 24,680 may trigger short-term selling pressure.

SEBI RA Dipak Takdora said that for Friday, the Nifty holding above 24,718 is crucial to prevent a slide toward 24,467. A close above 24,917 would mark the first technical sign of renewed strength, though volatility and swings within the current range remain likely.

Bharat Sharma of Stockace Financial Services believes that the markets may remain under pressure for a while due to uncertainty surrounding U.S. tariffs and penalty decisions, and pegged immediate support at 24,720 and resistance at 24,780.

Asian Markets Watch

Asian stock markets opened mostly lower on Friday after President Trump announced new global tariffs following his Aug. 1 deadline. 

Japan’s Nikkei 225 fell 0.6%, South Korea’s KOSPI dropped sharply by 3.2%, Taiwan’s TAIEX slipped 0.4%, and Australia’s S&P/ASX 200 declined 0.7%, while Hong Kong’s Hang Seng Index bucked the trend with a modest 0.2% gain.

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