Pharma Stocks Plunge As Trump Promises Major Tariff On Imports
Nifty Pharma index declined as much as 2.64% on Wednesday compared to 0.56% decline in the benchmark Nifty 50.
Pharma stocks declined in early trade on Wednesday after US President Donald Trump reiterated tariffs on pharmaceutical imports. Speaking at an event at the National Republican Congressional Committee, Trump announced the US would soon impose a "major" tariff on pharma imports.
The new tariffs are likely to prompt pharmaceutical companies to reconsider their operations in China and relocate to the US, Trump said.
Among the biggest losers, Gland Pharma Ltd. declined the most, trading 5.48% lower, followed by Zydus Lifesciences Ltd, which fell as much as 3.24%. The third biggest loser was Aurobindo Pharma Ltd, which dropped 3.18%.
Nifty Pharma declined as much as 2.64% on Wednesday compared to 0.56% decline in the benchmark Nifty 50.
Pharma was the only sector that outperformed on April 3 following Trump's initial tariff announcement, which did not include the pharmaceutical sector.
The index surged nearly 5% on that day but later gave up all gains after Trump declared plans to impose additional tariffs specifically targeting the pharma sector.
Since then, the index has declined nearly 1%, falling over 6% on April 4 when the US President proposed new tariff for pharma imports.
The stock market has experienced extreme volatility over the last couple of trading sessions. This turbulence was triggered by Trump's announcement of a 26% tariff on Indian imports and a 25% tariff on auto imports from India.
These tariffs have created significant uncertainty and concern among investors, leading to sharp declines followed by partial recoveries as the market attempts to stabilise amidst the ongoing trade tensions.
