India’s stock market logged their steepest one‑day fall in over four months on Thursday, dragged by heavyweight Reliance Industries Ltd., as uncertainty over US tariffs spurred broad selling.
The 30-share S&P BSE Sensex fell 0.92%, or 780.18 points, to 84,180.96, even as the broader NSE Nifty 50 lost 1.01% to 25,876.85. All 16 major sectors fell on the day. The broader small-caps and mid-caps slipped 2% each. The Indian rupee too ended lower on Thursday on tariff woes and persistent outflows, which overpowered a fresh and surprise intervention by the central bank.
Foreign investors have offloaded shares worth $900 million so far in January, following record sales worth $19 billion in 2025.
500% US tariff on India?
US President Donald Trump is weighing imposing tariffs of at least 500% on countries buying oil from Russia, and had warned India of higher tariffs over the matter. Washington has already imposed tariffs of up to 50% on New Delhi, even as discussions on an India-US trade deal continue.
The markets are not comfortable with the uncertainty over tariffs, said Anita Gandhi, head of institutional business at Arihant Capital Markets.
Stocks in the News
- Exports-oriented apparel makers Gokaldas Exports Ltd. and Pearl Global Ltd. tumbled 8.5% and 7.9%, respectively. Seafood exporters Avanti Feeds and Apex Frozen dropped 8.6% and 7.8%, respectively.
- Metal shares declined 3.4%, their biggest single-day drop in nine months, as the global metals rally lost steam. The sub-index had hit a record high on Tuesday.
- Oil and gas stocks fell 2.8%, their worst session in nine months, as investors assessed Trump’s plan to import Venezuelan crude. Reliance Industries lost 2.2%.
- The IT index fell 2%, pulling back after gains of 2.4% in the last two sessions.
- Capital goods firms L&T and BHEL, which have a significant share of govt projects, lost 3.1% and 10.5%.
India’s finance ministry has planned to scrap five-year old curbs on Chinese firms bidding for government contracts, Reuters reported, citing sources.