The US president Donald Trump has threatened potential 200 per cent tariffs on pharma imports. As per reports, Trump said he plans to impose tariffs on imported pharmaceuticals, with medicine tariffs potentially reaching 200 per cent. However, he said drug-makers would be given about a year "to get their act together".
In the Indian stock markets, pharma-related shares have rallied smartly over the last three months despite the US tariff threat. The Nifty Pharma index surged nearly 16 per cent from its low of 19,121 hit on April 7, 2025. In the same period, the NSE Nifty 50 index has surged 17.4 per cent from its low.
Among individual stocks - Laurus Labs and Gland Pharma have rallied around 50 per cent from the respective April 7 lows. Another 8 pharma shares including the likes of Divi's Laboratories, Natco Pharma, Glenmark Pharma, Dr. Reddy's Laboratories, Ipca Laboratories, Abbott India, Zydus Lifesciences and Biocon have gained in the range of 20 - 40 per cent.
Given the recent gains in pharma shares, will Trump's 200 per cent tariff threat derail the rally? Here's what the technical charts suggest.
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Current Level: 22,255
Likely Target: 23,500 / 21,300
Upside Potential: 5.6%
Downside Risk: 4.3%
Support: 21,775
Resistance: 22,815
The Nifty Pharma index has given a breakout out on the trend line indicator on July 3. As per the daily chart, the near-term bias for the Pharma index is likely to remain positive as long as the index holds above 21,775 levels.
However, the weekly chart shows presence of an overhead resistance around 22,815 levels. Thus the overall bias may remain tepid as long as the index remains in the 21,775 - 22,815 range. A breakout on the upside can potentially spurt to 23,500 levels; whereas a breakout on the downside could see the index drift back to 21,300 levels.
Glenmark Pharma
Current Price: ₹1,817
Likely Target: ₹2,265
Upside Potential: 24.7%
Support: ₹1,735; ₹1,700
Resistance: ₹1,860; ₹2,015; ₹2,140
Glenmark Pharma stock is likely to trade with a positive bias as long as the stock holds above ₹1,734 - ₹1,700 levels, wherein the super trend line and 20-Day Moving Average supports exist. On the upside, the stock can potentially surge to ₹2,265 levels, with intermediate resistance likely around ₹1,860, ₹2,015 and ₹2,140 levels.
Laurus Labs
Current Price: ₹793
Likely Target: ₹855
Upside Potential: 7.8%
Support: ₹756; ₹723; ₹707
Resistance: ₹725; ₹700
Laurus Labs is likely to trade on an upbeat note as long as the stock sustains above ₹756 levels, shows the weekly chart. The stock is trading in a fairly overbought zone on the daily scale; in case of a dip, the stock may seek support around ₹723 and ₹707 levels. On the upside, Laurus Labs stock can potentially surge to ₹855 levels, with interim resistance likely around ₹700 and ₹725 levels.
Gland Pharma
Current Price: ₹1,878
Likely Target: ₹2,130
Upside Potential: 13.4%
Support: ₹1,795; ₹1,758
Resistance: ₹2,035; ₹2,080
Gland Pharma is also trading in a fairly overbought zone, with key momentum oscillators showing some signs of tiredness. In case the stock trades consistently below ₹1,870, it could dip towards the support levels of ₹1,795 and ₹1,758 levels - indicating a potential downside risk of 6.4 per cent from present levels.
On the other hand, the broader trend remains up, with the likelihood of the stock testing ₹2,130 levels on its way up. Intermediate resistance for the stock can be anticipated around ₹2,035 and ₹2,080 levels.
 "Glenmark, Laurus Lab: Will Trump's 200% tariff threat derail pharma stocks?")
