26.08.202504:44:51UTC+00Sensex Falls on US Tariff Worries

The BSE Sensex fell by 611 points, or 0.7%, to reach 81,025 during Tuesday morning trade, reversing gains from the previous session and marking its lowest level in nearly two weeks. The decline was driven by concerns over US trade tariffs, following the release of a US draft notice suggesting potential tariffs of up to 50% on Indian goods, effective Wednesday. This also affected the Nifty 50, which decreased by 0.7% to drop below 24,800, as well as small-cap and mid-cap indices, which declined by 0.8% and 0.7%, respectively. The expected visit of US trade negotiators to New Delhi, originally scheduled for August 25–29, was canceled, diminishing hopes for any potential reduction or delay of the tariffs. Despite this, the fall was somewhat mitigated by anticipated GST reforms and expectations of strong GDP growth for the second quarter. Almost all sectors experienced declines, with healthcare and pharmaceuticals down by 1.7% each, banking and financial services decreasing by 1.1% each, and metals falling by 1.0%. Leading the laggards were Sun Pharmaceutical, which fell by 2.6%, Adani Ports by 1.7%, Tata Steel by 1.5%, and HDFC Bank by 1.3%.