Trump 50% tariff impact: SENSEX falls over 500 points, NIFTY drops below 24,400

The Indian equity benchmarks were on track to close lower for the third straight session on Thursday, August 7, as investor sentiment took a knock after the United States President Donald Trump on Wednesday imposed an additional 25% tariff on Indian goods.

The SENSEX fell as much as 565 points to hit an intraday low of 79,979, and the NIFTY50 index touched an intraday low of 24,387.

US President Donald Trump on Wednesday slapped an additional 25% tariff on goods coming from India as a penalty for New Delhi's continued purchase of Russian oil.

Trump signed an executive order – Addressing Threats to the US by the Government of the Russian Federation – imposing the additional tariff over and above the 25% levy which comes into effect from August 7.

After this order, the total tariff on Indian goods, barring a small exemption list, will be 50 per cent.

"The ad valorem duty imposed...shall be in addition to any other duties, fees, taxes, exactions, and charges applicable to such imports...," the order said.

While the initial duty becomes effective on August 7, the additional levy will come into effect after 21 days, or August 27.

"I find that the Government of India is currently directly or indirectly importing Russian Federation oil. Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 percent," it said.

Following Trump's decision to impose higher tariffs, shares of pharma companies, textile exporters, seafood exporters and gems and jewellery came under heavy selling pressure, considering their significant exposure to the North American market.

Meanwhile, selling pressure was broad-based in Thursday's session, as all the major sector gauges compiled by the National Stock Exchange were trading lower, led by the NIFTY Metal index's 1.15% decline. NIFTY Oil & Gas, Realty, PSU Bank, Pharma, Auto, Financial Services and Bank indices also fell between 0.5 and 1%.

Broader markets were also facing the heat of selling pressure as the NIFTY Midcap 100 index fell 0.75% and the NIFTY Smallcap 100 index dropped 0.7%.

Among the individual shares, state-owned Bharat Heavy Electricals Ltd (BHEL) tumbled nearly 7% on Thursday, August 7, as the firm’s net loss widened for the June quarter on higher expenses.

BHEL on Wednesday said its consolidated net loss widened to ₹455.50 crore in the June quarter of financial year 2025-26 as compared to a net loss of ₹211.40 crore in Q1 FY25.

Total expenses rose to ₹6,279.78 crore in the quarter from ₹5,874.98 crore in the same period a year ago.

Adani Ports was the top loser in the NIFTY50 index; the stock fell 2.74% to ₹1,330. Tata Motors, Adani Enterprises, Jio Financial Services, Shriram Finance, Bajaj Auto, Apollo Hospitals and Tata Steel also fell between 1.4% and 2.5%.

On the flipside, Hero MotoCorp, HDFC Life, ITC, Power Grid and JSW Steel were among notable gainers in the NIFTY50 index.

The overall market breadth was extremely negative, as 2,543 shares were declining while 1,228 were advancing on the BSE.