Nifty and Sensex Likely to Open Lower as US Imposes Tariffs on Pharma, Furniture, and Trucks

Pre-Market Update at 7:50 AM: On Friday, September 26, equity benchmark indices Sensex and Nifty 50 are expected to open lower after US President Donald Trump announced steep tariffs on pharmaceutical products, furniture, and heavy trucks. At 7:19 AM, the GIFT Nifty was trading at 24,923, down 40 points.

The new tariff structure, effective October 1, includes 100 per cent on pharmaceutical drugs, 50 per cent on kitchen cabinets and bathroom vanities, 30 per cent on upholstered furniture, and 25 per cent on heavy trucks. This development weighed on investor sentiment across global markets.

On Thursday, September 25, Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth Rs 4,995.42 crore, taking total September outflows to Rs 24,454 crore. Domestic Institutional Investors (DIIs), on the other hand, were net buyers for the 23rd consecutive session, purchasing equities worth Rs 5,103 crore.

Indian benchmarks closed lower for the fifth consecutive session. The Nifty 50 fell 166 points, or 0.66 per cent, to 24,890.85, slipping below the 24,900 mark and breaking its 50-EMA support. The Sensex dropped 555.95 points, or 0.68 per cent, to 81,159.68, as persistent FII selling kept investors cautious. 

Sectorally, most indices ended in the red. Nifty Metal gained 0.22 per cent, while Nifty Realty and Nifty IT were the worst performers. Realty declined over 4 per cent in two sessions, and IT extended its fall to a fifth straight day. Broader markets were also under pressure, with Nifty Midcap and Small-Cap indices posting their fourth consecutive day of losses.

US markets declined for the third straight session on Thursday. The Dow Jones Industrial Average fell 173.96 points, or 0.38 per cent, to 45,947.32. The S&P 500 dropped 33.25 points, or 0.50 per cent, to 6,604.72, while the Nasdaq Composite lost 113.16 points, or 0.50 per cent, to 22,384.70. 

The fall came after stronger-than-expected US economic data, which clouded expectations of Federal Reserve rate cuts. GDP for Q2 2025 was revised upward to 3.8 per cent, the fastest growth since Q3 2023. Jobless claims dropped by 14,000 to 218,000 for the week ending September 20, below expectations of 235,000. Durable goods orders also rose 2.9 per cent in August.

Gold prices edged lower as a stronger dollar reduced expectations of Fed rate cuts. Spot gold fell 0.2 per cent to USD 3,741.71 per ounce but was still up 1.7 per cent for the week. Crude oil prices moved higher, with WTI above USD 65 per barrel and Brent crude nearing USD 70 per barrel. Both benchmarks were set for a weekly gain of over 4 per cent, their strongest since early June. The US dollar index remained near a three-week high at 98.42.

For today, Sammaan Capital and RBL Bank will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.