Sensex Drops Over 200 Points Amid Pharma Slump, Broader Market Weakness

Indian stock markets declined on Tuesday, halting their recent rally as investors adopted a cautious stance ahead of upcoming earnings and global signals. The downturn was primarily driven by a sell-off in pharmaceutical shares and weakness across broader indices.

By 10:48 AM, the BSE Sensex had fallen 213.43 points to 80,583.41, while the NSE Nifty50 slipped 72.40 points to 24,388.75. Broader markets reflected deeper cuts, with both the Nifty Midcap and Smallcap indices declining nearly 1%, indicating reduced investor appetite for domestic-focused stocks.

Out of 13 key sectoral indices, 11 were trading in the red. The pharma sector led the losses, with the Nifty Pharma index falling 1.5%. The drop followed an executive order signed by US President Donald Trump to expedite domestic pharmaceutical manufacturing approvals, a move that could impact Indian drug exporters who rely heavily on the US market.

Financial stocks also faced pressure, with the Nifty Financial Services index down 0.7%. Reliance Industries, which had seen a steady upward trend over the past five sessions, lost 1.2%.

In contrast, the auto sector provided some relief. The Nifty Auto index rose 1%, led by Mahindra & Mahindra, which gained 3.1% following positive brokerage commentary predicting improved margins in its farm and SUV segments.

Ather Energy made its stock market debut, listing at a 2.18% premium to its IPO price of ₹321. However, the stock soon pared early gains. The company’s ₹2,981 crore IPO was fully subscribed last week.

Meanwhile, IT firm Coforge rose 3.5% despite underperforming March quarter earnings expectations, as several brokerages maintained a positive long-term view on the stock.

Vinod Nair, Head of Research at Geojit Financial Services, noted, “After the recent surge, markets appear to be pausing. We’re seeing a transition from broad-based gains to selective movements based on earnings and sector-specific developments.”