BSE Sensex fell 849.37 points (1.04%) to 80,786.54
NSE Nifty 50 dropped 255.70 points (1.02%) to 24,712.05
The Nifty MidCap index dropped 1.62%, and the Nifty SmallCap index slipped 2.03%, reflecting broad investor caution.
Meanwhile, the India VIX, the volatility or “fear index”, spiked 3.69%, showing that traders are bracing for more uncertainty in the sessions ahead.
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Impact on the stock market
Sector-wise performance
Nifty Pharma: down 1.67%
Nifty Metal: down 1.66%
Nifty FMCG: the lone gainer, up 0.91%
| Sector/Index | Performance |
| IT & BPM sector | -0.60% |
| Healthcare sector | -1.66% |
| Oil & Gas sector | -1.64% |
| Real estate sector | -2.24% |
| PSU Bank in India | -1.87% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| Eicher Motors | 6,151.00 | 2.68 |
| HUL | 2,692.60 | 2.32 |
| Maruti Suzuki | 14,714.00 | 1.81 |
| ITC | 403.35 | 1.00 |
| Nestle | 1,162.20 | 0.80 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| Shriram Finance | 594.70 | -4.21 |
| Sun Pharma | 1,600.30 | -3.40 |
| Tata Steel | 155.03 | -2.88 |
| Bajaj Finance | 876.25 | -2.73 |
| Trent | 5,295.00 | -2.36 |
Market aftermath: Impact on stocks
Textile and shrimp exporters hit by tariff worries
Export-driven sectors like textiles and aquaculture bore the brunt of the tariff announcement. Raymond Lifestyle fell nearly 3% to ₹1,145, KPR Mill tumbled 4.6% to ₹973.6, and Trident and Gokaldas Exports were down around 3% each.
Shrimp exporters were even more vulnerable. Avanti Feeds and peers fell up to 5% as fears mounted that the higher US duty could trigger order cancellations. Since the US buys more than half of India’s shrimp exports, there are worries that business could shift to rivals like Bangladesh, China, and Vietnam, which face lower tariffs.
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Pharma stocks retreat on US drug pricing pressure
The Nifty Pharma index snapped a three-session winning streak, falling 1.2%, after US President Donald Trump vowed to slash drug prices in America by “1,400–1,500%.”
Trump also threatened higher tariffs on pharma imports and issued a 60-day ultimatum to global drugmakers including Pfizer, Eli Lilly, and Novo Nordisk. They were asked to align US drug prices with what other nations pay by 29 September, or face punitive measures.
Indian pharma counters, already nervous about tariff implications, slipped up to 3% in intraday trade as investors priced in the risk of tighter pricing in their biggest export market.
Shree Digvijay Cement sinks after clarification on Adani buzz
Shares of Shree Digvijay Cement fell 5% after the company issued a clarification denying knowledge of any talks with the Adani Group over a potential asset purchase.
On Monday, media reports had suggested that Adani was eyeing its Sikka port as a satellite hub for Mundra, sending the stock up 10%. But the company’s filing with the exchanges cooled off the rally.
Adding to the noise, reports also indicated that private equity promoter True North is exploring a full exit, with a potential deal size pegged at ₹800–850 crore. For now, the uncertainty weighed on investor sentiment.
Crude oil trends
Global commodity markets also felt the weight of trade concerns.
- Brent November futures: down 0.44% to $67.92
- WTI October futures: down 0.49% to $64.48
- On MCX, September crude futures slipped 0.42% to ₹5,674
The slide followed Trump’s renewed warning of sanctions on Russia if Ukraine peace talks don’t progress. Analysts noted that India’s continued oil purchases from Russia, even with new tariffs in place, don’t change the broader bearish outlook for oil prices.
On the flip side, natural gas futures on MCX rose 0.86% to ₹246.40. Meanwhile, spices like turmeric (₹13,282, down 0.69%) and jeera (₹19,600, down 0.43%) traded lower on NCDEX.
Conclusion
The 26 August session highlighted just how sensitive Indian equities are to global trade headlines. The announcement of a 25% additional tariff on Indian imports by the US rattled markets, sparking broad-based selling and a surge in volatility.
Export-oriented sectors like textiles, shrimp, and pharma bore the heaviest losses, while Shree Digvijay Cement saw its rally cut short after clarifying Adani speculation. The FMCG space was a rare bright spot, reflecting investor preference for defensives in uncertain times.
With crude oil softening but trade tensions rising, the big question now is: will this correction remain a one-day reaction or mark the start of a tougher phase for Indian equities?
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