<h1>US draft 25% tariff proposal sparks massive sell-off, wiping Rs5.41 lakh crore as benchmark plunges over 800 points</h1> Indian equity markets plunged, erasing about Rs 5.41 lakh crore in market value as the benchmark index fell over 800 points amid widespread selling after the US administration issued a draft order to impose an additional 25% tariff on Indian imports effective August 27. Persistent foreign fund outflows and global equity losses heightened risk-off sentiment. Realty, pharma, banking, metals, mid- and small-cap stocks led declines while defensive FMCG stocks gained. Broad market breadth was negative with a large majority of stocks down and significant sectoral contractions across realty, metal, telecom, energy and healthcare.