Dalal Street meltdown: Sensex tumbles 2,500 points, Nifty drops 3% after Trump’s tariff and visa threats | PuneriPages.in
✍️ By Prashant for PuneriPages.in
The Indian stock market witnessed a harsh downturn on Friday, September 26, 2025, as benchmark indices plunged across the board. The BSE Sensex dropped over 700 points, while the Nifty 50 fell below the 24,700 mark amid widespread panic.
The trigger? A renewed storm of geopolitical risk — led by Donald Trump’s announced 100% tariffs on branded pharma imports and threats over H-1B visa reforms — that spooked investors across sectors.
Table of Contents
1. The Trigger: A Double Whammy from Trump
Pharma Tariffs Under Spotlight
Trump’s declaration of a 100% tariff on branded and patented pharmaceutical imports from India — effective October 1 — rattled the pharma sector instantly. Given that India exports billions in generic and branded drugs to the U.S., this move raised red flags for future trade flows.
H-1B Visa Fee Hike Threat
In a parallel shock, Trump also threatened to hike H-1B visa fees steeply. Since many Indian IT and tech firms depend heavily on U.S. project staffing via H-1B, investors feared an adverse impact on margins and operations.
Combined, these threats broke investor confidence in two large export-oriented sectors — pharma and IT — and raised the specter of a reversal in the relatively stable U.S.-India trade relationship.
2. Sector-Wise Carnage: Who Got Hit Hardest
IT Sector
The Nifty IT index was among the worst hit as major stocks like Infosys, TCS, and Wipro dropped sharply. The fear of increased visa costs and project risks spurred heavy selling.
Pharma Stocks
Pharma followed suit, with steep declines across names like Sun Pharma, Cipla, Dr. Reddy’s, etc. Investors priced in the tariff risk and potential disruptions to exports.
Broad-Based Spillover
The shock wasn’t limited to those sectors. Banking, metals, and export-linked stocks also slid as the risk-off mood spread. Weak global cues and foreign investor outflows amplified the decline.
3. Market Snapshot: Key Numbers from Today
- Sensex: Down over 700 points (or ~-2-3%).
- Nifty 50: Broke below 24,700.
- Sector indices: Pharma and IT among the biggest losers
- Rupee: Under pressure amid tariff and risk concerns.
- Broader market: Midcap & smallcap indices also in red.
4. Why Market Fell Today — The Big Drivers
| Factor | Description |
|---|---|
| Geopolitical Shock | Sudden tariff & visa threats by Trump triggered panic selling. |
| FII Outflows | Foreign investors continued selling, adding downward pressure. |
| Export Risk | Pharma & IT, big export drivers, seen as vulnerable to U.S. policy shifts. |
| Global Risk-Off | Weak cues from U.S. & global markets increased investor aversion. |
| Profit Booking | After recent gains, many traders locked in profits ahead of uncertainty. |
5. Expert Views: Buy the Dip or Stay Cautious?
Most analysts are urging caution in the near term. This isn’t a domestic valuation adjustment — it’s a geopolitical shock. Many believe the downside risk is still open, especially if Trump’s threats gain traction or escalate.
However, some see opportunity for long-term investors. They suggest selectively accumulating strong, fundamentally stable names in sectors less exposed to U.S. policy changes — if the valuation makes sense during the dip.
6. What to Watch Going Forward
- Clarity from U.S. on the scope and timeline of pharma tariffs
- Reactions from Indian government / trade diplomacy
- Developments in U.S. visa / H-1B policy
- Foreign investor flows (FII movement)
- Performance of pharma, IT, export-oriented names
🔍 Final Word
Today’s crash was not random — it was a perfect storm of geopolitical risk, export vulnerability, and panic in sensitive sectors. For investors, it’s a harsh reminder that global policy shocks can hit domestic markets hard. The next few days will be volatile. Approach with caution, focus on quality, and let clarity emerge before jumping back in.
⚠️ Disclaimer: This article is for informational purposes only and should not be taken as investment advice. Please consult a SEBI-registered financial advisor before making any decisions.
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