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Stock markets plunged on Wednesday, July 22. The Sensex declined 715.06 points and ended the trading day at 76,755.05 and the Nifty declined 191.45 points and closed at 23,996.25. Heavyweight stocks dragged the markets down, such as the entire IT pack. Nearly 40 Nifty stocks slipped as much as 4 percent each including banking majors. Oil prices spiked as much as 4 percent with Brent Crude crossing 95 dollars per barrel following the fresh US-Iran escalation. The Indian rupee also weakened by 33 paise and closed at 96.57 to the dollar versus Tuesday's close of 96.24 to the dollar.

The escalation in the US-Iran conflict as well as  spiking 4 percent after US Secretary of State Marco Rubio said Iran is 'not serious' about peace talks has dented investor sentiment. In fact some experts believe market sentiment has also been hit with new tariff threats and frameworks from the US. Donald Trump on Wednesday announced tariffs of 100% on all generic drugs imported into the United States from 1 August 2028, which will be raised to 200% from the following year. Pharma shares declined on Wednesday after US President Donald Trump declared a phased tariff plan for imported generic medicines. The Nifty Pharma Index declined nearly 2% in intraday and ended lower by declining over 1 percent.

G. Chokkalingam Head of Research at Equinomics Research told Times Now Digital,  need not worry too much about Trump’s proposed new tariff plan. The 2-year period is quite reasonable period for some of Indian companies to set up units in the US. They may not fully replace Indian operations with units in the US. However increasing efforts to invest in the US will pacify US leadership and minimise the scope for adverse moves against Indian companies. By the time the 2-year grace period is getting over ( i.e. by August 2028), his term is also coming closer to end. New leadership may not be so aggressive as over 100% tariff on pharmaceutical imports into the US will increase the cost for US households quite substantially. It is also highly possible for reversal of his own proposals as the US President Trump is well known for frequently reversing his own proposal."