The trigger for the sell-off was a statement by US Senator Lindsey Graham, who said that US President Donald Trump had given the green light to a bipartisan Russia sanctions bill.
The proposed legislation seeks to sharply raise duties on Russian imports into the United States to at least 500% of their value and could be used as leverage against countries such as India, China, and Brazil that continue to buy Russian oil.
The senator indicated that the bill could be brought to a bipartisan vote as early as next week and expressed confidence in strong cross-party backing. He described the proposed law as a critical diplomatic tool linked to negotiations surrounding the Russia-Ukraine conflict.
Meanwhile, Trump has warned of higher tariffs on Indian goods if New Delhi does not address US concerns related to Russian crude imports. Currently, the US has already imposed tariffs of up to 50% on certain Indian products, with roughly half of that directly linked to India’s purchases of Russian oil.
Shrimp stocks fall the most
Seafood exporters were among the most severely affected during the session. Avanti Feeds fell 7%, while Apex Frozen Foods also dropped 7%. Coastal Corporation declined 2%, Waterbase slipped 1%, and Sharat Industries lost 1.4%.Investors fear that any escalation in tariffs or sanctions could directly hit shrimp exports to the US, which remains the most important market for Indian seafood companies.
Pharma stocks unspared
Pharmaceutical stocks, traditionally seen as relatively defensive exporters, were not spared. Dr Reddy’s Laboratories fell 2%, Cipla edged 0.22% lower, Sun Pharmaceutical slipped 0.7%, and Torrent Pharmaceuticals declined 1%.
While medicines are often shielded from the harshest trade barriers, concerns around pricing pressure, regulatory scrutiny, and political rhetoric weighed on sentiment.
Textile stocks too feel the pinch
Textile exporters also faced heavy selling as investors priced in the risk of weaker US demand and higher landed costs. Vardhman Textiles dropped 2%, KPR Mill fell 2.3%, and Gokaldas Exports plunged 12%, marking one of the steepest declines in the sector. Indo Count Industries, Sutlej Textiles, Welspun Living, and Kitex Garments fell between 2% and 2.5%.
Metal and auto component exporters also saw pressure. JSW Steel declined 2%, Hindalco Industries slid 4%, and Bharat Forge fell 2%, reflecting concerns that higher tariffs could distort global trade flows and reduce export competitiveness.
The broader market also remained weak. The Sensex was down over 600 points, while the Nifty 50 slipped 222 points. Selling pressure in megacap stocks continued, with HDFC Bank and Reliance Industries extending recent losses of up to 1%. Both stocks have already fallen nearly 4% earlier in the week, adding to the drag on benchmark indices.
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