Sensex Sheds Nearly 600 Points as Crude Oil and Pharma Tariff Concerns Rattle Dalal Street

Indian equities remained firmly in bearish territory on Wednesday morning as rising crude oil prices and fresh concerns over US tariffs on generic medicines dented risk appetite. At around 10:00 am, the Sensex was down 586 points, or 0.76 per cent, at 76,883.91. The Nifty 50 slipped 168.25 points, or 0.70 per cent, to 24,019.45, bringing the psychologically important 24,000 level back into focus.

The weakness was not restricted to frontline stocks. The Nifty Bank traded near 57,322, down around 1.1 per cent, as selling continued in major private and public sector lenders. Broader markets performed even worse, with the Nifty Midcap 100 declining around 0.9 per cent and the Nifty Smallcap 100 falling nearly 1.3 per cent. This showed that investors were reducing exposure across market capitalisation segments rather than merely booking profits in index heavyweights.

Sectoral action was largely negative. Nifty Pharma was the biggest casualty, dropping around 2 per cent after the US announced a phased tariff structure for imported generic medicines. The proposed tariff would remain at zero for two years before rising to 100 per cent and subsequently to 200 per cent. Nifty PSU Bank and Nifty IT were also among the laggards.

Nifty Auto bucked the trend, rising around 0.8 per cent in early trade. Energy, FMCG and consumption shares also showed relative strength during the opening hour, although gains remained modest amid the broader sell-off.

Among individual stocks, Bandhan Bank plunged around 14 per cent after the lender lowered its FY27 exit return on assets guidance due to margin pressure and higher operating expenses. TVS Motor gained about 4 per cent, while Bajaj Auto advanced 3.4 per cent after both companies reported higher quarterly profits. HDFC Bank declined another 1 per cent, extending its post-results fall to around 8 per cent in three sessions following weaker-than-expected net interest margins.

The latest provisional institutional data for Tuesday showed foreign institutional investors buying Indian equities worth Rs 1,650.16 crore. Domestic institutional investors, however, sold shares worth Rs 656.88 crore. Institutional figures for Wednesday will be available only after the market closes.

Global cues were mixed but broadly supportive. Overnight, the Dow Jones rose 0.74 per cent, the S&P 500 gained 0.89 per cent and the Nasdaq climbed 1.29 per cent. Japan’s Nikkei advanced around 1.9 per cent, while South Korea’s Kospi surged more than 6 per cent. However, Brent crude climbing to USD 92.67 per barrel and the Dollar Index hovering near 101.20 overshadowed the positive equity cues for India.

For the rest of the session, traders will closely watch whether the Nifty can defend 24,000. A sustained breach may expose the index to 23,800, while 24,400 remains the immediate resistance. Earnings from Dr Reddy’s Laboratories, Eternal, BPCL, IndusInd Bank and other companies could keep stock-specific volatility elevated.

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