Introduction
Indian benchmark indices are poised for a negative opening on Friday as GIFT Nifty futures indicate a decline. The market sentiment remains cautious following Thursday’s slump, with several key stocks drawing attention due to significant developments. Pharmaceutical shares face potential disruption from new US tariff threats, while defense and industrial companies announce major contracts and investments.
Key Points
- US threatens 100% tariffs on pharma imports from October 2025 unless companies establish US manufacturing plants
- Hindustan Aeronautics signs ₹62,370 crore defense contract for 97 Light Combat Aircraft with deliveries starting 2027-28
- Multiple Indian companies announce major investments and contracts including ABB India's ₹140 crore expansion and RITES' $18 million South African locomotive deal
Market Sentiment Sours as Indices Point Lower
The Indian equity market is bracing for a challenging trading session on Friday, with early indicators pointing toward a negative start. The GIFT Nifty futures, which serve as a crucial early barometer for the Nifty50 index, were trading lower by 66 points at 24,902. This decline follows a substantial sell-off on Thursday, September 25, when the domestic benchmark indices experienced significant losses. The S&P BSE Sensex slumped by 555 points, or 0.68%, to settle at 81,160, while the Nifty50 traded 0.66% lower, dropping 166 points to close at 24,890. This consecutive downward pressure reflects growing investor caution amid both domestic and international developments.
The broader market weakness comes at a time when specific sectors and companies are facing unique challenges and opportunities. The combination of macroeconomic concerns and stock-specific news is creating a complex trading environment where selective movements are expected to dominate the session. Investors are likely to closely monitor both the overall index trajectory and individual stock performances as they navigate Friday’s trading.
Pharmaceutical Sector Faces US Tariff Headwinds
The pharmaceutical sector finds itself at the center of potential disruption following a significant announcement from the United States. US President Donald Trump declared that, effective October 1, 2025, the US will impose a 100% tariff on branded and patented pharmaceutical imports unless companies establish manufacturing plants in America. This protectionist move could have substantial implications for Indian pharma companies that export to the US market, one of the world’s largest pharmaceutical markets.
The announcement creates an 18-month window for pharmaceutical companies to reassess their manufacturing strategies and potentially establish production facilities within the United States. For Indian pharma stocks, this development introduces considerable uncertainty, as companies must weigh the costs of establishing US manufacturing operations against the potential loss of access to the lucrative American market. The sector, which has been a consistent performer in India’s export portfolio, now faces a strategic inflection point that could reshape global supply chains.
Defense and Industrial Sectors Show Strength
Amid the broader market concerns, several companies in the defense and industrial sectors announced positive developments that could provide some counterbalance to the negative sentiment. Hindustan Aeronautics (HAL) secured a massive ₹62,370 crore deal with the Ministry of Defence to procure 97 Light Combat Aircraft. The deliveries are scheduled to begin in 2027–28 and continue over a six-year period, providing long-term revenue visibility for the defense major.
Meanwhile, ABB India announced plans to invest over ₹140 crore to expand and modernize its Low Voltage (LV) motors manufacturing facility. The company simultaneously launched IE5 ultra-premium efficiency motors, positioning India as a global innovation hub for advanced industrial technology. This investment underscores the continued confidence in India’s manufacturing capabilities and the growing demand for energy-efficient industrial solutions.
RITES also contributed to the positive industrial news flow, announcing an $18 million contract from South Africa’s Talis Logistics to supply and commission overhauled Cape Gauge ALCO Diesel Electric Locomotives. The company expects to execute the project within 6–8 months after receiving the advance, demonstrating India’s growing export capabilities in the railway infrastructure sector.
Corporate Developments Across Sectors
Beyond the major sectoral stories, several other companies announced significant developments that could influence their stock performance. Exide Industries invested ₹80 crore in equity shares of its subsidiary, Exide Energy Solutions, to fund a greenfield lithium-ion battery cell and module plant in Bengaluru. This investment raises the company’s total commitment to the subsidiary to ₹3,882.23 crore, reflecting its strategic pivot toward emerging energy storage technologies.
On the regulatory front, Nuvoco Vistas Corporation received a show-cause notice from the Joint Commissioner (Prev), CGST & Central Excise, Raipur, alleging that the company’s carrying and forwarding agents issued invoices without actual cement supply during FY20 to September 2024 of FY25. The authorities have demanded ₹37.61 crore in tax and an additional ₹74.87 crore in penalty, totaling ₹112.48 crore, creating potential headwinds for the cement manufacturer.
Tata Motors provided an update on its subsidiary Jaguar Land Rover (JLR), noting that key sections of its digital systems are operational again after a cyber incident. The company confirmed full operations at its Global Parts Logistics Centre as part of its recovery program, indicating a swift response to the cybersecurity challenge that had briefly disrupted operations.
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