Mumbai, Aug 26 (PTI) Benchmark BSE Sensex tumbled 849 points to close below the 81,000 level on Tuesday due to widespread selling pressure after the US issued a draft notice on the implementation of an additional 25 per cent tariff on Indian products.

The 30-share BSE Sensex tumbled 849.37 points, or 1.04 per cent, to close at 80,786.54 with 25 of its constituents ending lower and five with gains. During the day, the index nosedived 949.93 points, or 1.16 per cent, to hit a low of 80,685.98.

The 50-share NSE Nifty dropped 255.70 points, or 1.02 per cent, to finish at 24,712.05. In the intra-day session, it dived 278.15 points, or 1.11 per cent, to hit a low of 24,689.60.

Persistent foreign fund outflows and losses in global equities following US President Donald Trump's firing of a Fed governor also dampened investor sentiment, analysts said.

Realty, pharma, banking and metal stocks bore the brunt of the selling, while FMCG shares displayed relative resilience with marginal gains.

Sun Pharmaceutical was the biggest laggard among Sensex firms, declining by 3.40 per cent following reports that Donald Trump had suggested a cut in drug prices of between 1,400 per cent and 1,500 per cent.

Trump's latest remarks came as his administration adopts an aggressive stance on pharmaceutical pricing and plans to impose higher tariffs on imported medicines.

Tata Steel, Trent, Bajaj Finance, Mahindra & Mahindra, Bajaj Finserv, Reliance Industries, Axis Bank, Tech Mahindra, Adani Ports, Titan, BEL, and Larsen & Toubro were also among the losers.

However, Hindustan Unilever, ITC, Tata Consultancy Services and UltraTech Cement were the gainers.

Maruti Suzuki India gained 1.85 per cent as the company kicked off exports of its first electric vehicle e VITARA to 100 countries and also inaugurated the production of lithium-ion battery cells for strong hybrid electric vehicles at its facility in Gujarat.

"Sentiment was largely dampened by caution ahead of the upcoming tariff deadline, which weighed heavily on export-sensitive sectors," Ajit Mishra - SVP, Research, Religare Broking, said.

The pressure was compounded by sustained foreign institutional selling, a weakening rupee, and a rebound in crude oil prices, prompting investors to reduce risk exposure, Mishra said.

"Domestic market sentiment turned cautious as the US penalty tariff deadline expires tomorrow. The persistent depreciation of the INR is adding pressure and may further impact foreign institutional inflows," Vinod Nair, Head of Research, Geojit Investments, said.

Investors are closely monitoring the central government's efforts to support economic growth, including proposed GST rate revisions and sector-specific relief measures for industries affected by higher tariffs, Nair said.

Broad-based selling was observed across sectors, except for FMCG, which gained on expectations of increased consumption, he added.

The US has issued a draft order implementing an additional 25 per cent tariff on Indian products, which President Donald Trump announced earlier this month, beginning August 27.

According to the draft notice released by the Department of Homeland Security, the additional tariffs will cover Indian products "that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am Eastern Daylight Time on August 27, 2025".

The notice explained that the higher levies were linked to "threats to the US by the government of the Russian Federation," with India targeted in line with that strategy.

Market breadth was negative as a total of 2,891 stocks declined, while 1,220 advanced and 130 remained unchanged on the BSE.

The BSE Smallcap index went lower by 1.68 per cent, while Midcap gauge slipped 1.34 per cent.

Among BSE sectoral indices, Realty plunged by 2.24 per cent, followed by metal (2.10 per cent), Telecommunication (2.04 per cent), Energy (1.68 per cent), Healthcare (1.65 per cent), Utilities (1.61 per cent), Industrials (1.59 per cent) and Power (1.53 per cent).

FMCG was the only gainer.

In Asian markets, Hong Kong's Hang Seng, Japan's Nikkei 225 index, South Korea's Kospi and Shanghai's SSE Composite index closed in the negative territory.

The European markets were trading lower. US markets ended lower on Monday.

Global oil benchmark Brent crude declined 1.48 per cent to USD 67.78 a barrel.

Foreign Institutional Investors offloaded equities worth Rs 2,466.24 crore on Monday, according to the exchange data.

On Monday, the 30-share BSE Sensex climbed 329.06 points to settle at 81,635.91. The 50-share NSE Nifty rose 97.65 points to close at 24,967.75. PTI HG MR MR