Sensex Tumbles Over 340 Points as US Tariff Shockwaves Hit Indian Markets | Stock Market Live Updates

India’s benchmark indices—Sensex and Nifty 50—opened deep in the red this Friday after a late-night jolt from the White House. US President Donald Trump’s declaration of a 25% tariff on Indian imports, coupled with an undefined penalty over Russian deals, triggered a wave of volatility across Dalal Street.

At 2:05 PM, the Sensex was down 340 points, while Nifty 50 slipped 122 points, extending losses for the fifth straight week. The GIFT Nifty also signaled weakness from the get-go, setting the tone for a shaky start to August after a bearish July.

Why the Panic?

President Trump’s announcement, made on his Truth Social platform, accused India of imposing “unfairly high tariffs” and criticized its continued engagement with Russia for military and energy deals. The penalties are effective from August 1, just as the India-US trade deal deadline expires.

"India is a friend, but its tariffs are far too high," Trump posted, adding that the country would face “consequences” for ignoring global calls to halt Russian engagements.

India's Calculated Response

India’s Ministry of Commerce was quick to respond, stating:

“The Government attaches the utmost importance to protecting our farmers, MSMEs, and entrepreneurs. We will take all necessary steps to safeguard national interests.”

Sectoral Impact & Market Movers

Reliance, Adani Ports, and NTPC were among the major laggards on the BSE.

Pharma stocks remained under pressure, with Aurobindo and Sun Pharma deep in the red. Mankind Pharma was the rare gainer.

Textile companies like Gokaldas Exports and Pearl Global are under watch, as the US slashed tariffs on Bangladeshi imports from 35% to 20%, intensifying competition.

ITC is scheduled to release its earnings today, which could influence broader sentiment.

Stock Highlights

🟢 Suzlon Energy surged 6.3% intraday after bagging a 381 MW project from Zelestra India.

🔴 Coal India, PB Fintech, and City Union Bank remain in focus post-earnings.

SEBI’s New IPO Rule Proposal

In parallel market news, SEBI has proposed raising institutional investor quotas in mega IPOs (₹50B+), reducing retail participation from 35% to 25%. This move reflects a shift in strategy to ensure stronger anchor investor backing amid volatile conditions.

Tariffs 101: A Quick Look

Tariffs are import taxes designed to protect domestic industries. Trump has repeatedly criticized India as a “tariff king,” despite ongoing trade negotiations. His latest move includes a 35% hike on Canadian goods too—excluding those covered under USMCA—showing his hardline stance isn’t limited to India.

Outlook Ahead

Investor sentiment remains fragile, with the FII long-to-short ratio hitting a low 10%—a level unseen since April 2023. While historically such lows hint at a potential rebound, cautious optimism is the name of the game as India navigates geopolitical headwinds and global trade tensions.

Stay tuned for real-time updates as earnings results roll in and global cues shape the market direction.