Stock Market Today: Sensex at 81,159, Nifty 50 at 24,890

Pharma and IT lead the fall amid US tariffs and FII outflows

The Indian stock market is facing heavy pressure today as global uncertainties and domestic challenges weigh on sentiment. Both benchmark indices, the Sensex and the Nifty 50, are trading lower, extending the losing streak for the sixth consecutive session. Weak global cues, US tariff announcements, and consistent foreign investor outflows are combining to push markets deeper into the red. Almost every sector is under stress, with information technology and pharmaceuticals leading the fall.

Market Overview

The Nifty 50 is trading at 24,890.85, down by 166.05 points or 0.66 percent. The Sensex is at 81,159.68, lower by 555.95 points or 0.68 percent. Intraday moves show sharp volatility, with the Sensex slipping more than 300 points at one point and the Nifty sliding below the crucial 24,800 mark. Broader markets are showing even sharper declines, with mid-cap and small-cap indices under heavy selling pressure.

The bond market reflects cautious sentiment as well. The 10-year government bond yield rises slightly to 6.5038 percent compared to its previous close of 6.4972 percent. This uptick shows that investors are seeking safety in bonds while equities continue to correct.

Impact of US Tariffs

The main trigger for today’s weakness comes from the announcement of new US tariffs. The government has decided to impose a 100 percent tariff on branded and patented drugs and a 25 percent tariff on heavy-duty trucks starting in early October. This development hits Indian pharmaceutical exporters directly because the US is one of the largest markets for Indian drug manufacturers.

Pharma stocks are among the hardest hit. Sun Pharma is down nearly 2 percent, while Natco Pharma is slipping over 3 percent. Other major companies like Biocon and Zydus Lifesciences are also facing steep intraday declines. The entire sector is under selling pressure as traders and investors worry about export earnings being squeezed in the months ahead.

Technology Sector Under Pressure

The information technology sector is also struggling. Global cues are not favorable after Accenture projects weaker-than-expected revenue growth of just 2 to 5 percent. This indicates softness in international demand for outsourcing and digital transformation services, which directly affects Indian IT companies.

In addition to weak earnings outlooks, concerns over US visa policy changes and uncertainties around H-1B visas continue to weigh heavily on sentiment. Tata Consultancy Services is down by about 2.5 percent, while other IT majors like Infosys and Wipro are also trading lower. The persistent weakness in this sector adds significant drag to the benchmarks.

Foreign Fund Outflows and Domestic Sentiment

Foreign institutional investors continue to pull money out of Indian equities. The persistent outflows highlight global caution towards emerging markets at a time when US bond yields remain attractive and global risks rise. The pressure from these outflows is especially visible in mid-cap and small-cap stocks, where liquidity is lower, causing sharper falls.

On the domestic front, investors are cautious. The market is waiting for more clarity on corporate earnings for the upcoming quarter. The uncertainty over earnings growth in sectors like IT, pharma, and financials is creating hesitation. Domestic traders are also watching global signals closely, adding to the cautious stance.

Sectoral and Stock-Specific Trends

Banking and financial stocks are showing relative resilience compared to IT and pharma. ICICI Bank is down by 0.47 percent, which is less than the market average. Reliance Industries, a heavyweight in the index, is lower by 0.82 percent, while Larsen & Toubro is slipping by around 0.93 percent.

The sell-off is broad-based, but sectors like autos and realty are managing to limit losses. However, defensive sectors such as consumer staples and utilities are beginning to see interest as investors shift focus to safer bets.

The unlisted shares of the National Stock Exchange have also taken a hit, falling nearly 17 percent from their May peaks. This shows that investor caution is not limited to listed markets but is also spilling over into private valuations.

Technical Picture

The technical picture shows that markets are in a downward consolidation phase. Nifty repeatedly fails to hold above resistance zones and struggles to sustain momentum. The support near 24,700 to 24,800 is critical. If this zone breaks, the market could test further downside levels.

Derivatives activity also shows strong speculative positioning. Options contracts are seeing heavy volumes, with traders betting on short-term moves. The heightened activity in weekly and monthly contracts increases volatility and makes intraday swings sharper.

Global and Macro Factors

The Reserve Bank of India is expected to maintain current interest rates for now as inflation risks remain. However, investors are watching closely for any forward guidance. Global central banks, especially the US Federal Reserve, are playing a big role in driving sentiment. A hawkish tone from the Fed can increase pressure on emerging markets like India by strengthening the dollar and encouraging capital outflows.

Trade tensions and tariffs are dominating global markets, and India is not isolated from these trends. Any escalation in trade disputes could continue to hit export-driven sectors like pharmaceuticals and IT.

Valuation and Long-Term Outlook

Despite short-term weakness, global brokerages see value in Indian markets. HSBC has recently upgraded Indian equities to an “overweight” position, pointing out that valuations look attractive compared to regional peers. HSBC has set a Sensex target of 94,000 by the end of 2026, assuming steady earnings growth and a forward price-to-earnings multiple of 23 times.

This shows that long-term structural drivers like domestic consumption, infrastructure expansion, and manufacturing growth remain intact. The current correction is seen by some analysts as an opportunity for selective long-term investment.

Market Sentiment and Investor Strategy

At present, market sentiment is cautious and tilted towards risk aversion. Traders are staying light on positions, while investors are rotating into defensives and dividend-paying companies. The focus is on companies with strong balance sheets, steady cash flows, and lower dependence on exports.

While global headwinds dominate the short-term picture, domestic fundamentals like government spending on infrastructure and rural demand are expected to provide some cushion. If global trade tensions ease and foreign inflows return, markets may see a sharp rebound from current levels.

Final Thoughts

The Indian stock market remains under significant pressure today. Benchmarks are trading lower as US tariff actions, global economic uncertainty, and persistent foreign fund outflows combine to weigh on sentiment. Pharma and IT sectors are leading the fall, while banking and defensives are providing some stability.

The market is in a consolidation phase with a clear downward bias. The next few weeks will be critical as corporate earnings unfold and global trade policies evolve. Investors are advised to remain cautious in the short term but also recognize that the current correction could create opportunities for long-term positioning.