Indian equity benchmark indices opened lower on Wednesday as soaring global crude oil prices, driven by escalating tensions between the US and Iran, dented investor confidence. The domestic market faced additional headwinds from pharmaceutical stocks after US President Donald Trump announced plans to introduce steep tariffs of up to 200 per cent on generic drug imports starting from 2028. Under the proposed structure, generic drug imports into the United States will remain tariff-free for two years from 1 August 2026, after which a 100 per cent levy will apply for one year before rising to 200 per cent. The policy shift triggered widespread selling across Indian pharmaceutical firms during early trade.
The BSE Sensex opened with a gap-down at 77,384.95 against its previous close of 77,470.11, while the NSE Nifty opened at 24,150.45 compared to 24,187.70. By mid-morning, the Sensex had fallen 404.58 points, or 0.52 per cent, to trade around 77,065.53, while the Nifty slipped 94.50 points, or 0.39 per cent, to hover near 24,093.20. Sectoral trends were predominantly negative, with the Nifty Pharma index emerging as the worst performer after shedding 1.64 per cent. However, the metals, auto, and consumer durable stocks managed to register marginal gains.
Specific winners among the BSE-listed stocks were only Maruti, Titan, Eternal, Hindustan Unilever, and Trent, while some of the prominent losers were IndiGo, Axis Bank, Sun Pharma, Infosys, Tech Mahindra, ITC, Reliance, BEL, Tata Steel, Adani Ports, and Power Grid. Drugmakers with significant revenue exposure to the US market suffered notable losses. Sun Pharma slid 1.28 per cent to trade around Rs 1,936.95, while Aurobindo Pharma dropped 3.13 per cent to Rs 1,531. Cipla declined 2.06 per cent to Rs 1,403, and Lupin fell 3.05 per cent to Rs 2,437.70. In energy markets, Brent crude hovered near $92.04 per barrel, whilst US crude traded around $85.26 per barrel.
Banking and market analyst Ajay Bagga observed that the domestic market is displaying divergence, noting that whilst the advance-to-decline ratio remains positive, profit-booking in major private banks has dragged performance down over consecutive sessions. He warned that elevated crude prices would increasingly manifest in currency pressures, balance-of-payments metrics, and fiscal deficit projections.
Analyst Vipin Dixena suggested that indices are likely to remain bound within a tight range over the near term. Persistent geopolitical issues in the West Asia region, being crude near important threshold levels, a weakening rupee, and continued flows from foreign institutional investors create a mood of caution. But he added that the currently ongoing first-quarter earnings season would bring focus to individual stock plays. From a technical standpoint, Dixena stated that the Nifty being traded below the 50-day EMA is indicative of weakness, which is also confirmed by the RSI of 34, approaching oversold levels. Important supports are seen at 24,000; any break of which would send the index lower to the 23,900–23,850 area.
Also read: Sensex, Nifty trade flat in early session
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