New Delhi [India], September 26 (ANI): The Sensex and Nifty opened in red on Friday as the Nifty 50 extended its losing streak, slipping below key levels for the fifth consecutive session. The index has already given up more than half of the 1,000-point rally it had witnessed since the August 29 lows.

The Nifty Pharma index dropped sharply by 2.42 per cent, touching an intraday low of 21,445.50. Sun Pharma slipped 4.87 per cent to a new 52-week low of Rs. 1,548, while Gland Pharma fell 4.70 per cent to Rs. 1,880. Biocon was down 3.68 per cent at Rs. 342.85. Other leading pharmaceutical companies, including Laurus Labs, Ipca Labs, Divis, Zydus Life, Alkem Labs, Cipla, Ajanta Pharma, Dr Reddy's, Torrent Pharma, Abbott India, and Glenmark, also ended lower in the range of 0.8 to 3.2 per cent.

United States President Donald Trump announced on Friday that his administration will impose a 100 per cent tariff on branded and patented pharmaceutical products beginning October 1, 2025, unless the manufacturing companies establish production facilities in the United States.

Ajay Bagga, Banking and Market Expert, said the latest move from Washington has created fresh uncertainty. 'The bigger news was the expansion of Trump tariffs to branded pharma, some furniture items and big trucks. The 100 per cent tariffs announced on branded pharma imports can potentially impact over USD 233 billion of US pharma exports. Indian generic drug exporters should be exempt for now, which safeguards most of the USD 12 billion of Indian pharma exports to the US,' he said.

Bagga added that clarity is awaited on the impact of these tariffs on Indian companies exporting branded or speciality products to the US.

Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance, said, 'The executive order refers to patented / branded products supplied to the US. It is not applicable to generic medicines.'

On Thursday, the index ended at the day's low after every intraday recovery attempt was sold into. Market participants said the next crucial support level for the Nifty stands at 24,803, which is the 61.8 per cent retracement of its recent rally from the August 29 low to the swing high of 25,448. On the upside, 25,000 remains the immediate resistance.

Early indicators also pointed towards a weak start. Gift Nifty opened lower by 62.5 points at 24,896.50, compared to the previous close of 24,959.

Sandeep Neema, Director of PL Asset Management, stated that the global backdrop is becoming increasingly challenging. 'The US economy is edging toward stagflation, with growth slowing, unemployment rising, and inflation climbing from its low point. While the Federal Reserve has already cut rates in September 2025, persistent price pressures mean aggressive easing is unlikely in the near term. The next meaningful monetary support is expected only in 2026,' he said.

Neema also pointed out that tariff headwinds have intensified. 'The imposition of 50 per cent duties on Indian exports worth around USD 86 billion poses near-term risks to growth, especially for engineering, pharma, chemicals, textiles, electronics, and gems and jewellery. At worst, these measures could shave 20-30 basis points from India's GDP in FY26,' he added.

On sector outlook, he said positioning is skewed toward metals, banks, and industrials, which are better placed to capture the next phase of India's growth. Metals could benefit from government infrastructure spending and global supply tightness, while banks are expected to see credit growth pick up in the second half of FY26. Industrials and capital goods, he noted, are supported by strong order inflows and policy reforms.

At the same time, Neema maintained a cautious stance on IT and consumption, while highlighting that export-oriented sectors remain under pressure from US tariffs. (ANI)