Indian Stock Market Plunges Over 600 Points Amid US-China Trade Tensions and Weak Rupee; Pharma Stocks Hit Hard

The Indian stock market experienced a significant sell-off in afternoon trade, with the benchmark Sensex falling by over 600 points and the Nifty index dropping below the 25,900 mark. This broad market decline followed negative trends in Asian markets, which were influenced by the US-China trade meeting between President Donald Trump and Chinese leader Xi Jinping.

While President Trump described the meeting as "amazing" and announced a reduction in average tariffs on Chinese goods from 57% to 47%, official comments from China suggested that a comprehensive deal was not yet finalized. China's Commerce Ministry stated that corresponding adjustments would be made to its countermeasures against US tariffs. Chinese President Xi Jinping noted that negotiating teams had reached a consensus and urged swift follow-up work for tangible results. He also emphasized the benefits of dialogue over confrontation, highlighting areas for cooperation like combating illegal immigration, telecom fraud, and responding to infectious diseases.

Adding to the market pressure, the Indian Rupee weakened further, approaching the 88.50/$ level, while the Dollar Index rose to a month-high above 99. Market participants expressed skepticism about the sustainability of any shift in tone from the US administration, fearing a quick return of tariff threats and a rise in risk-off sentiment.

The pharmaceutical sector also saw substantial losses. Dr. Reddy's Laboratories experienced a significant drop, hitting record lows after receiving a notice of non-compliance from Canada's Pharmaceutical Drugs Directorate concerning its submission for Semaglutide Injection, a generic version of Ozempic. Investors are concerned about the time required for clarifications and subsequent regulatory review.

**Impact** This news has a significant negative impact on the Indian stock market, driven by global trade uncertainties, currency depreciation, and specific sector headwinds. Investor sentiment remains cautious due to the mixed signals from the US-China trade discussions and the weakening Rupee. The pharma sector faces specific challenges, potentially affecting the performance of related stocks. The overall impact rating is 7/10.

**Heading: Difficult Terms and Their Meanings** * **Tariff**: A tax imposed by a government on imported goods or services. * **Countermeasures**: Actions taken to oppose or neutralize the effect of another action; in this context, China's response to US tariffs. * **Consensus**: A general agreement among a group. * **Risk-off sentiment**: An attitude where investors become more cautious and prefer to move their money from riskier investments (like stocks) to safer ones (like government bonds or gold). * **Non-compliance**: The failure to adhere to a rule, law, or regulation. * **ANDS**: Appears to be a typo for ANDA (Abbreviated New Drug Application), which is a regulatory filing submitted to health authorities for approval of a generic drug. * **Generic version**: A drug that is made by a different company after the patent protection for the original branded drug has expired. * **Regulator**: An official body responsible for supervising and controlling a particular industry or activity, such as a country's drug administration.