Overview

• The White House announced a 100% levy on imported branded and patented pharmaceuticals effective October 1, with exemptions for companies operating or setting up manufacturing in the United States.
• Indian benchmarks fell intraday, with the Sensex down about 780 points and the Nifty lower by roughly 245 points, while the Nifty Pharma index slipped more than 2%.
• Volatility rose as the India VIX jumped around 6.8% and foreign institutional investors were reported to have sold about Rs 4,995 crore of equities the previous day.
• Analysts described the drop as a knee‑jerk reaction, noting most Indian exports to the US are generics, which are not the primary target of the new tariff.
• The action is part of a broader Section 232 review that has also examined potential measures on medical devices, keeping investor focus on implementation details and corporate responses such as US onshoring.