28 Aug 2025 : Indian stock markets opened sharply lower on Thursday as steep 50% tariffs imposed by the United States on key imports rattled global investor sentiment and triggered a broad sell-off across sectors.
The BSE Sensex fell over 750 points in early trade, slipping below the 76,000 mark, while the NSE Nifty50 declined by nearly 250 points, trading around 23,100. Market experts noted that fears of an intensifying trade war, coupled with concerns over India’s export outlook, weighed heavily on investor confidence.
According to analysts, the new tariffs—announced by Washington as part of its aggressive trade protection strategy—are likely to hurt Indian exporters in sectors like textiles, engineering goods, pharmaceuticals, and IT services, all of which have substantial exposure to the U.S. market.
“Investors are factoring in a sharp decline in export revenues, especially from sectors heavily dependent on the U.S.,” said Rajesh Shah, Head of Research at a leading brokerage. “The knee-jerk reaction is visible in today’s sharp fall, but markets may remain volatile as clarity emerges on negotiations between India and the U.S.”
Shares of major IT companies such as Infosys, TCS, and Wipro were down 3–4% in morning trade. Textile exporters in Tirupur, Noida, and Surat, already struggling with thin margins, also came under pressure. Banking and financial stocks mirrored the broader market mood, with heavyweights like HDFC Bank and ICICI Bank posting losses.
On the global front, Asian markets also reacted negatively, with Nikkei in Japan and Hang Seng in Hong Kong slipping over 1% each. Wall Street had closed lower the previous night, as tariff fears spread across the globe.
The Federation of Indian Export Organisations (FIEO) warned that the new tariff regime could severely dent export competitiveness, leading to potential job losses in labor-intensive sectors. “If these measures are not rolled back, we may see a prolonged slowdown in export-driven industries,” FIEO President said in a statement.
Meanwhile, the Indian government has indicated that it will seek dialogue with Washington to resolve trade differences. Commerce ministry officials hinted that retaliatory measures were not off the table, though New Delhi prefers a negotiated settlement.
Foreign institutional investors (FIIs), who had been net buyers in the past month, turned sellers on concerns over global growth. Experts believe that unless the U.S. softens its stance or offers exemptions, markets may remain under pressure in the near term.
Analysts also advised retail investors to adopt caution, avoid panic selling, and focus on defensive sectors like FMCG and healthcare, which are less exposed to tariff risks.
Summary
Indian stock markets tumbled as U.S. imposed steep 50% tariffs, triggering heavy sell-offs in IT, textiles, and export-driven sectors. Investor sentiment weakened sharply, with Sensex and Nifty plunging amid global trade war fears.