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Indian Stocks Plunge as US Tariffs Shake Investor Confidence
26 Sep
Summary
- Indian stock market sees sharp decline
- IT and pharma sectors hit hard by US tariffs and visa fees
- Persistent foreign investor outflows contribute to market volatility
The Indian stock market has seen a sharp decline in the past week, as investors shifted their focus from the anticipated boost of GST 2.0 to the impact of new US tariffs under the Trump administration. On September 26, 2025, the Sensex dropped over 660 points, while the Nifty slipped below 24,750, with major laggards including M&M, Eternal, Sun Pharma, and IT giants like HCL Tech, Tech Mahindra, and TCS.
The fall in the market comes amid growing concerns over US tariffs on Indian exports, particularly in sectors like textiles, gems, jewellery, and shrimp. The recent hike in H-1B visa fees to $1 lakh has also added pressure on the IT sector, which holds significant weight in the index. Additionally, the US has imposed a 100% tariff on branded and patented pharmaceutical products, further impacting the pharma sector.
Sugandha Sachdeva, Founder of SS WealthStreet, highlighted that the benchmark indices have witnessed a straight six-session decline, snapping a three-week winning run and down around 2.3% for the week. She noted that the market is facing multiple factors, including persistent foreign investor outflows, with foreign investors selling around ₹24,000 crore of Indian stocks this month.
The markets remain volatile as investors digest the implications of US tariffs, geopolitical tensions, and domestic macroeconomic cues. While support levels provide potential relief, the near-term outlook is cautious, and traders and investors are closely monitoring the US PCE inflation data, which could shape the Fed's next moves and influence Indian market sentiment.
