Mumbai, Aug 29 (PTI) Equity benchmark indices Sensex and Nifty fell on Friday, extending their downward journey to the third day, as investors continued to reel under pressure caused by the imposition of high tariffs and relentless foreign fund outflows.

The 30-share BSE Sensex dropped 270.92 points or 0.34 per cent to settle at 79,809.65. During the day, it declined 338.81 points or 0.42 per cent to 79,741.76.

The 50-share NSE Nifty edged lower by 74.05 points or 0.30 per cent to 24,426.85.

The US has imposed a steep 50 per cent tariff on Indian goods entering America from August 27. This high duty is expected to impact exports of certain labour-intensive sectors like textiles and leather and footwear and shrimp.

From the Sensex firms, Mahindra & Mahindra fell by 2.96 per cent, followed by Reliance Industries which lost 2.21 per cent. Infosys, NTPC, Tata Motors and Tech Mahindra were also among the laggards.

However, ITC, Bharat Electronics, Trent, and Larsen & Toubro were among the major gainers.

Meanwhile, Reliance Industries Chairman and Managing Director Mukesh Ambani on Friday announced the launch of Reliance Jio's initial public offering in the first half of 2026.

Addressing the 48th Annual General Meeting of RIL, Ambani announced that Jio will now expand its operations overseas and develop its own artificial intelligence technology.

On Thursday, the Sensex tanked 705.97 points or 0.87 per cent to settle at 80,080.57. The Nifty dived 211.15 points or 0.85 per cent to 24,500.90.

In the past three trading days, the BSE benchmark has plummeted 1,826.26 points or 2.23 per cent, and the Nifty tumbled 540.9 points or 2.16 per cent.

"Investor sentiment remained cautious as markets attempted to digest the full impact of the US tariff. The persistence of this issue is likely to heighten the future competitiveness of India's exports in some areas.

"Equity benchmarks underperformed, with mid and smallcap segments particularly affected by risk aversion and stretched valuations," Vinod Nair, Head of Research, Geojit Investments Limited, said.

In Asian markets, South Korea's Kospi and Japan's Nikkei 225 index settled lower while Shanghai's SSE Composite index and Hong Kong's Hang Seng ended in positive territory.

Markets in Europe were trading lower.

The US markets ended higher on Thursday.

Global oil benchmark Brent crude declined 0.80 per cent to USD 68.07 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,856.51 crore on Thursday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 6,920.34 crore, according to exchange data. PTI SUM HVA

High tariffs on exports dampen market sentiment and foreign fund outflows pressure equity benchmarks amid portfolio shifts. Imposition of a high tariff on Indian goods entering the United States has weakened export competitiveness for labour intensive sectors and is a principal driver of sustained equity market declines amid notable foreign institutional selling, concentrated pressure on mid and small cap segments, and offsetting domestic institutional purchases; corporate strategic moves including an IPO announcement may affect sectoral allocation and liquidity during this tariff driven adjustment.