Indian equity benchmarks faced heavy losses on Wednesday after fresh 50% U.S. tariffs on Indian goods weighed on investor sentiment. The Sensex dropped over 700 points, while the Nifty 50 fell below the 24,550 mark, extending this week’s market weakness.
The impact was most visible in export-oriented industries. Shares of textile, footwear, and jewellery companies declined sharply, falling between 2–4%, while some firms with high U.S. exposure saw losses of up to 12%. Analysts said these sectors are directly vulnerable to the new tariff regime announced by Washington.
This comes on the back of an already volatile week. Over the past two sessions, Indian markets had lost nearly 1,500 points on the Sensex amid global uncertainty around trade and foreign investment flows. Foreign portfolio investors (FPIs) have pulled out over $2.6 billion in August, the highest monthly outflow in six months.
Market experts noted that while the tariff-driven sell-off has rattled equities, domestic institutional investors are expected to cushion the fall. They also pointed out that defensive sectors such as pharmaceuticals, IT services, and electronics may remain relatively stable in the near term, as their U.S. exposure is less tariff-sensitive.
Economists warn, however, that if trade tensions escalate further, India’s export-driven sectors could see pressure on earnings in the coming quarters. For now, trading is expected to remain volatile as global markets assess the full impact of the U.S. decision.
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