<h1>Tariff increase on Indian goods triggered sharp equity market losses and amplified foreign fund outflows.</h1> Implementation of an additional 25 per cent tariff by the United States on Indian goods, raising total levies to 50 per cent, operated as the key regulatory shock and was accompanied by a cotton import duty exemption as a limited offset. The tariff, combined with sustained foreign fund outflows, coincided with a sharp contraction in domestic equity valuations, broad-based selling across market caps, marked sectoral declines in services, telecommunications and IT, and a notable reduction in market capitalisation.