At 9:45 am, the S&P BSE Sensex was down over 467 points, or 0.56%, at 80,323.75 points, while the broader Nifty 50 fell 0.56% to 24,574 points. Fourteen of the 16 major sectors logged losses. The broader small-cap and midcap indices were 0.2% and 0.1%, respectively.

According to analysts, markets are facing significant headwinds after the US implemented the extra 25% tariff on Indian goods over New Delhi’s purchase of Russian oil, taking the total tariffs to 50%.

“This measure has already triggered a sharp selloff and is expected to maintain pressure on the market in the near-term,” said Santosh Meena, head of research at Swastika Investmart.

The tariffs are a direct challenge to India’s export-oriented sectors such as textiles and apparel, gems and jewellery, seafood, chemicals and auto component sectors, Meena said.

Foreign portfolio investors have sold Indian shares worth $2.66 billion in August so far, the highest outflows since February, amid tariff concerns and a muted corporate earnings season.

Oil prices fell as investors weighed the outlook for U.S. fuel demand and assessed potential crude supply shifts as India faces punishing U.S. tariffs over Russian oil imports.