Amid realized concerns, stock markets from Japan to Korea-Hong Kong experienced chaos due to the introduction of 10% tariffs announced by Donald Trump. This tariff shock also directly impacted the Indian stock market.
The BSE Sensex index began trading with a drop of more than 770 points, falling to 75,613. Simultaneously, the NSE Nifty index also showed a significant decline, losing about 200 points and settling at 23,646.
On the last working day of the week, the BSE Sensex opened at 75,708, which was lower than the previous close of 76,391, and then continued to fall to 75,613. The NSE Nifty followed suit, decreasing to 23,646 compared to the figure of 23,869 recorded on Thursday.
Before the decline in the Indian market, alarming signals were already emerging due to concerns over Donald Trump's 10% tariffs. Asian markets demonstrated a crash: the Nikkei index of Japan fell by more than 2,000 points, while the Korean Kospi index dropped by approximately 6%. The Hong Kong Hang Seng index also slipped down by about 2%. Furthermore, the DAX, CAC, and British FTSE-100 markets were in a declining zone. The Gift Nifty observed a drop of 200 points.
Despite growth in Asian markets, the Indian stock market continued to fall on the fourth trading day of the week. Markets were tense due to mutual threats between Donald Trump and Iran, as well as Houthi attacks in the Red Sea, in addition to problems in the Strait of Hormuz.
At the opening of trading, the BSE Sensex index fell by more than 300 points compared to the previous close. Similarly, the NSE Nifty index opened with a drop of about 100 points relative to Wednesday's close. Furthermore, 24 out of 30 stocks in the BSE Largecap segment traded in the red.
During Thursday's trading, the BSE Sensex opened at 76,515, which was below the previous closing level of 76,755, and soon dropped to 76,344. The NSE Nifty showed similar dynamics, opening at 23,904 compared to the previous close of 23,996, before falling to 23,876.
In the initial stage of trading, a decline was observed across all categories. Shares of large companies such as IndiGo, HDFC Bank, SBI, and Bajaj Finance in the BSE Largecap segment fell by more than 1%. In the Midcap segment, shares of Hindustan Petroleum, GMR Airport, Phoenix Ltd, and Persistent showed a decline of about 2%.
The primary reason cited for the ongoing decline in the stock market is the continuing war in the Middle East. On one hand, US President Donald Trump continues to exchange threats, while Iran warns of retaliation. Additionally, global tension was high due to the closure of the Strait of Hormuz, and attacks in the Red Sea triggered a sharp rise in oil prices. The price of Brent Crude exceeded $95, which further increases the risk of inflation globally, causing concern in the stock market.
The Indian stock market reacts sharply to any events or statements originating from the USA. This scenario repeated on Wednesday after Donald Trump once again issued threats, announcing the introduction of a 'tariff bomb.' This time, his target was the pharmaceutical sector, and he stated the possibility of imposing a tariff of up to 200% on generic drugs.
On Tuesday, Donald Trump published a post on the social network Truth Social that caused global concern. He announced that for the next two years, starting August 1st, the US would have a zero tariff rate on imported generic medicines. However, after this period ends, a 100% tariff will be imposed on these drugs for one year, and then 200% after another year.
Trump's announcement regarding tariffs had a direct impact on the Indian market. On Wednesday, as trading began, the BSE Sensex fell from its previous level of 77,470 to 77,384. Within half an hour of trading, the index lost more than 700 points, reaching 76,722.
As for the NSE Nifty, it continued to decline as trading progressed. This index of 50 stocks opened at 24,150, which was below the previous close of 24,187, and then sharply plummeted. By the time of writing, Nifty showed a drop of more than 200 points, trading at 23,973.
Following Trump's threats regarding tariffs, share prices declined across many stocks, especially in pharmaceutical companies. Among major companies listed in the Largecap category on BSE, IndiGo Share (3.50%), SBI Share (1.75%), Axis Bank Share (1.60%), and Infosys Share (1.40%) saw declines.
Furthermore, in the BSE Midcap category, declines were recorded for Voltas Share (2.70%), Presistent Share (2.60%), Hindustan Petroleum Share (2.10%), and Godrej Properties Share (2%). In the Smallcap segment, companies PGEL Share (5.50%) and Brigade Share (4%) were also trading in a declining zone.
