Sensex Plummets Below 80,000 Amid US Tariff Concerns

Market Reaction to US Tariff Announcement

Mumbai: The Sensex, a key equity index, experienced a significant drop of 849 points, falling below the 80,000 mark on Tuesday. This decline was primarily driven by extensive selling activity following the US government's draft notice regarding a proposed 25% tariff on Indian goods.

Additionally, ongoing foreign fund withdrawals and a negative global market trend further impacted investor confidence.

The BSE Sensex closed at 80,786.54, down 849.37 points or 1.04%. At one point during the trading session, it plummeted by 949.93 points, reaching a low of 80,685.98.

Similarly, the NSE Nifty index fell by 255.70 points, or 1.02%, ending at 24,712.05, with an intra-day low of 24,689.60 after a drop of 278.15 points.

Among the stocks that dragged down the Sensex were Sun Pharmaceutical, Tata Steel, Trent, Bajaj Finance, Mahindra & Mahindra, Bajaj Finserv, Reliance Industries, Axis Bank, Tech Mahindra, Adani Ports, Titan, BEL, and Larsen & Toubro.

Conversely, Hindustan Unilever, Maruti Suzuki India, ITC, Tata Consultancy Services, and UltraTech Cement saw gains.

The US draft order, which President Donald Trump announced earlier this month, is set to impose the additional tariffs starting August 27, 2025.

The Department of Homeland Security's draft notice specifies that these tariffs will apply to Indian products entering for consumption or being withdrawn from warehouses after 12:01 am Eastern Daylight Time on the specified date.

The notice indicated that these increased tariffs are associated with perceived threats from the Russian government, with India being a target in this broader strategy.

Asian markets reflected this sentiment, with Hong Kong's Hang Seng, Japan's Nikkei 225, South Korea's Kospi, and Shanghai's SSE Composite all closing lower.

European markets also showed declines, and US markets ended lower on Monday.

In the commodities market, Brent crude oil prices fell by 1.48% to USD 67.78 per barrel.

Data from the exchange revealed that Foreign Institutional Investors sold equities worth Rs 2,466.24 crore on Monday.

The previous day, the BSE Sensex had gained 329.06 points, closing at 81,635.91, while the NSE Nifty rose by 97.65 points to finish at 24,967.75.