Tariff Shock Hits Dalal Street: Sensex, Nifty Slip As Banks, Metals, Pharma Drag; FMCG Only Bright Spot

Stock Market Today: Indian shares fell in early trade on Tuesday, erasing their gains for August, after the US Department of Homeland Security confirmed that Washington will impose an additional 25% tariff on all Indian-origin goods starting Wednesday.

The move comes after President Donald Trump announced extra tariffs earlier this month as punishment for India's rising purchases of Russian oil.

Stock Market Today: Why Share Market Down Today?

With the fresh duties, Indian exports to the US will face tariffs of up to 50% among the highest imposed by Washington.

The sharp policy shift weighed on investor sentiment. The benchmark Sensex dropped 471.93 points, or 0.58%, to 81,163.98 as of 11:27 a.m. The Nifty 50 also slipped 157.20 points, or 0.63%, to 24,810.55.

According to analysts, the impact was visible across export-linked sectors. Textile, chemicals, and shrimp companies fell in anticipation of a direct hit from higher US duties.

“While this is sentimentally negative for the market, we do not expect a deeper correction from hereon as it is not shocking news,” Pankaj Pandey, head of retail research at ICICI Securities, told Reuters.

He added that markets are likely to remain stock and sector specific, with export-oriented names under pressure and domestic consumption themes likely to gain momentum.

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Nifty Sectoral Indices

Among sectors, Nifty Pharma dropped 1.24% to 22,086.40, dragged by Sun Pharma, which fell 2.35% to Rs 1,617.85. Nifty Metal also weakened 0.98% to 9,343.85, while Nifty Realty slipped the most, down 1.54% at 902.30.

Export-driven IT names were mixed, with Nifty IT nearly flat at 36,274.85, but individual stocks such as Tech Mahindra (-0.59%) and HCLTech (-0.32%) edged lower.

The banking and financial space also weighed on benchmarks. Nifty Bank fell 0.89% to 54,645.95, with key private lenders under pressure.

ICICI Bank was down 0.94% at Rs 1,419.75, Axis Bank lost 0.93% at Rs 1,060.05, and Kotak Mahindra Bank slipped 0.73% to Rs 1,969. HDFC Bank declined 0.74% to Rs 975.

Top Gainers And Losers

In broader financials, Bajaj Finance fell 1.28% to Rs 889.00 and Bajaj Finserv dropped 1.50% to Rs 1,934.05, dragging the Nifty Financial Services index 0.93% lower to 26,061.10.

Heavyweights also contributed to the decline. Reliance Industries shed 0.98% to Rs 1,399.05, Adani Ports tumbled 1.15% to Rs 1,324.90, and Titan slipped 0.77% to Rs 3,624.05.

Automobile stocks showed mixed trends: Maruti Suzuki rose 0.65% to Rs 14,552.05, but Mahindra & Mahindra fell 0.42% to Rs 3,385.50 and Tata Motors lost 0.87% to Rs 680.70.

Overall, 15 of the 16 major Nifty sectoral indices ended lower. The only bright spot was FMCG stocks, which bucked the trend amid news of the new GST regime, which slashes tax rates and assigns just two slabs of 5 per cent and 18 per cent.

The proposed two-slab regime, if approved by the GST Council, will replace the current four slabs in the Goods and Services Tax (GST) regime, doing away with the 12 per cent and 28 per cent slabs.

Nifty FMCG gained 0.50% to 55,961.15, led by Hindustan Unilever, up 1.39% at Rs 2,666.10, and ITC, which edged 0.14% higher to Rs 399.95.

Analysts said consumer-oriented sectors may attract investors as domestic demand remains resilient despite global trade headwinds.