Mumbai [Maharashtra] (India), July 22 (ANI): Indian benchmark indices opened lower on Wednesday as surging crude oil prices amid escalating tensions between the US and Iran weighed on investor sentiment, while Indian pharmaceutical stocks came under pressure after US President Donald Trump announced plans to impose tariffs of up to 200 per cent on generic drug imports from 2028.

Trump announced generic drugs imported into the US will continue to attract zero per cent tariffs for two years from August 1, 2026, after which the tariff will rise to 100 per cent for one year and 200 per cent thereafter. The announcement put pressure on Indian pharma stocks, with several companies trading in the red during early trade.

Sensex opened with a gap-down at 77,384.95 as against previous close of 77,470.11 while Nifty opened at 24,150.45 as against previous close of 24,187.70. The indice was trading at around 77,065.53, down 404.58 points or 0.52 per cent while Nifty was trading at around 24,093.20, down 94.50 points or 0.39 per cent, at the time of reporting.

Sectorally, most indices traded in the red with Nifty Pharma emerging as top loser, shedding 1.64 per cent in the early morning trade, while metal, auto, and consumer durables traded in the green during the early morning trade.

On BSE, only Maruti, Titan, Eternal, Hindustan Unilever, M&M and Trent were the major gainers. Indi Go, Axis Bank, Sun Pharma, Infosys, Tech Mahindra, ITC, Reliance, BEL, ITC, Tata Steel, Adani Ports, Power Grid among others were the major losers.

Companies with higher US revenue were trading in the red during the early morning trade. Sun Pharma was trading in the red at around Rs 1936.95, down 25.20 points or 1.28 per cent.

Aurobindo Pharma too was trading in the red at Rs 1531, down 49.45 points or 3.13 per cent, Cipla was trading at around Rs 1403, down 29.55 points or 2.06 per cent and Lupin was trading at around Rs 2437.70, down 76.70 points or 3.05 per cent, at the time of reporting.

In the commodity market, Brent crude was trading at around USD 92.04/barrel while crude oil was trading at around USD 85.26 per barrel, at the time of reporting.

Banking and market analyst Ajay Bagga noted, 'Indian markets are showing a divergence with the advance/decline ratio positive but a selloff in key private banks leading to negative market performance over the last two days. As of this morning, the Indian markets are expected to open slighltly lower . Oil price impact will start showing up in the currency, the balance of payments and the projected fiscal deficit number.'

Market analyst Vipin Dixena noted, 'In my view, the market is likely to remain range-bound in the near term as persistent geopolitical tensions in West Asia, elevated Brent crude prices near $90 per barrel, a weak rupee, continued FII selling, and mixed global cues keep investors cautious. That said, the ongoing Q1 earnings season is expected to shift the focus towards stock-specific opportunities, with corporate earnings likely to play a decisive role in driving market direction alongside developments in West Asia and the movement in crude oil prices.'

'The opening trade indicates that bears remain in control, with broader market sentiment turning defensive. And Nifty is trading below EMA 50 signalling short-term weakness. Additionally The RSI has slipped to around 34, reflecting strengthening bearish momentum, although it is approaching the oversold zone,' he said.

'On the downside, 24,000 is the immediate support to watch. A sustained break below this level could extend the decline towards the 23,900-23,850 zone. On the upside, 24,200 now becomes the immediate resistance, and only a decisive move above this range may help the index regain positive momentum,' he noted. (ANI)