Pharma stocks surge as Trump's 26% tariff on India exempts sector

India pharmaceutical stocks soared today after US President Donald Trump imposed a 26% reciprocal tariff on India but excluded the pharma sector from the levies.

The Nifty Pharma Index surged 3.74% to 21,737.35, as investors reacted positively to the exemption.

A White House fact sheet confirmed that pharmaceuticals would not be subjected to the new reciprocal tariffs, fueling optimism in the sector. This move comes as a relief to Indian drug manufacturers, many of which export heavily to the US.

Leading the rally, Gland Pharma surged 6.65%, followed by Natco Pharma at 5.31% and Lupin, which gained 4.79%. Other major gainers included Aurobindo Pharma (+4.7%), Sun Pharmaceutical Industries (+4.44%), and Ipca Laboratories (+4.28%).

Several other pharma giants also saw strong gains, including Divis Laboratories (+3.59%), Dr. Reddys Laboratories (+3.04%), Zydus Lifesciences (+2.98%), Cipla (+2.63%), Granules India (+2.54%), Biocon (+2.22%), Alkem Laboratories (+1.91%), Torrent Pharmaceuticals (+1.86%), Laurus Labs (+1.79%), Ajanta Pharma (+1.73%), Glenmark Pharmaceuticals (+1.67%), Abbott India (+1.39%), JB Chemicals & Pharmaceuticals (+0.69%), and Mankind Pharma (+0.22%).

The United States is India's biggest market for pharmaceutical exports, making the exemption a significant relief for Indian drug manufacturers. However, this does not guarantee that pharmaceutical imports will remain tariff-free indefinitely. The White Houses 2 April agenda did not include industry-specific tariffs, but the media reports suggest that levies on pharma goods could still be introduced at a later stage. The media reports indicate that drugmakers are actively lobbying President Trump to implement any potential tariffs gradually, allowing them time to adjust their manufacturing strategies.

Powered by Capital Market - Live News