Indian Equities Plunge on New US Tariffs
Estimated reading time: 5 minutes
- Sharp decline in Indian benchmark indices Nifty50 and BSE Sensex.
- 50% US tariffs on Indian imports implemented as retaliation for Russian oil purchases.
- Broad sell-off in Indian equities impacting Asian markets.
- Significant impact on export-oriented sectors and heavy industry stocks.
- Heightened risk aversion and volatility observed.
Contents
Market Impact
At 3:30 AM UTC (09:00 IST) on August 28, 2025, the Nifty50 and BSE Sensex experienced a sharp decline after the implementation of 50% US tariffs on Indian imports. This retaliatory measure against India’s purchase of Russian oil triggered a broad sell-off. The Times of India and Moneycontrol reported on this significant escalation in trade tensions.
By 9:27 AM IST (3:57 AM UTC), the Nifty50 was at 24,539.05, down 173 points (-0.70%), while the BSE Sensex fell over 600 points (-0.72%) to 80,203.19. This report and the Business Standard confirm the tariffs as the main cause. The sell-off was broad-based, with decliners outpacing advancers. Export-oriented sectors and heavy industry were hit hardest. Negative sentiment spread to equity futures and other Asian markets.
While data on VIX and VSTOXX isn’t available, the market reaction shows heightened risk aversion. The Times of India cites high market valuations and weaker earnings as contributing factors.
The tariffs highlight the impact of geopolitical events on global markets and the vulnerability of export-dependent economies.
What to Watch Next
- Further market reaction in Asia and globally
- Impact on Indian corporate earnings
- Potential for further retaliatory measures
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