Domestic markets are expected to open on a flat note despite new tariff threats from the US President regarding pharmaceutical products. The Gift Nifty is currently at 25,030, compared to the Nifty September futures at 24,967.70 and October futures at 25,093.70. Analysts predict a continued weak trend due to significant selling from foreign portfolio investors.
Ponmudi R, CEO of Enrich Money, commented that the Gift Nifty suggests a flat to mildly negative start for Indian equities, reflecting a cautious sentiment in both global and domestic markets. Investor focus is likely to be on the domestic pharmaceutical sector following the Trump Administration’s announcement of a 100% tariff on imports of branded or patented pharmaceutical products, effective October 1. “This move presents a direct risk to over $3.6 billion in annual Indian pharmaceutical exports to the US, raising concerns for companies with considerable US exposure,” he stated.
Analysts anticipate the benchmark indices will trade within a narrow range, although specific sectors like pharmaceuticals and information technology may continue to face pressure.
This tariff announcement follows a significant increase in US H-1B visa fees, which has already led to considerable selling in IT sector stocks over recent sessions. The repercussions have also been felt in the forex market, where ongoing outflows and risk aversion have pushed the rupee to a record low, intensifying investor apprehensions, Ponmudi noted.
Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking Private Ltd, mentioned that with foreign selling showing no signs of slowing down and US visa policy challenges particularly affecting IT and export-focused companies, the markets may remain volatile in the near term.
Globally, stock markets are indicating bearish trends as most equities across the Asia-Pacific region are in the red during early morning trading on Friday.
Published on September 26, 2025.
