Indian equities fell sharply on Tuesday as investors braced for a potential escalation in trade tensions with the United States. The benchmark BSE Sensex dropped as much as 689 points, or 0.8%, to around 81,000, its lowest level in two weeks, while the NSE Nifty 50 slid to roughly 24,750. Selling accelerated after a draft notice from Washington proposed imposing tariffs of up to 50% on a range of Indian goods starting 27 August. Market sentiment was further dented by a weakening rupee and persistent outflows from foreign portfolio investors. Rate-sensitive and export-oriented shares led declines, with pharmaceutical heavyweights Sun Pharma, Lupin and Dr. Reddy’s Laboratories losing up to 4%. Mid-cap contract-research firm Sai Life Sciences fell about 5% on unusually heavy volumes. Traders said clarity on the U.S. tariff plan and the rupee’s trajectory will be critical for direction in the coming sessions. The additional U.S. levies would coincide with broader tariffs on Chinese goods that take effect on Wednesday, keeping global risk appetite subdued.