Sun Pharma, Dr. Reddy's Prop Up Nifty As Pharma Stocks Buck Trump Tariffs Market Rout
Going against the market decline, Nifty Pharma was trading 4.54% higher, as of 9:17 a.m., the highest levels since Feb. 10.
The NSE Nifty Pharma index rose on Thursday to hit over one-month high, driven by relief across the sector as it was excluded from US President Donald Trump's new tariffs. Meanwhile, Sun Pharmaceutical Industries, Dr. Reddy's Laboratories Ltd., and Cipla Ltd. were the top gainers in Nifty 50.
Going against the market decline, pharma benchmark was trading 4.54% higher, as of 9:17 a.m., the highest levels since Feb. 10.
The newly enacted tariffs announced by Trump will not apply to a specific set of goods, including steel, aluminum, copper, semiconductors, and lumber and more.
The POTUS had announced a 26% duty on Indian imports. Notably, India's weighted average tariff rate on American imports is 12%, as compared to the US' previous 3% on Indian goods. He had also announced a 10% baseline tariff on all countries, and a 25% tax on foreign automakers.
Shares of Sun Pharmaceutical Industries, Divi's Laboratories Ltd., Cipla Ltd., Torrent Pharmaceuticals Ltd., Mankind Pharma Ltd., and Lupin Ltd. rose in early trade as investors assessed the impact.
Pharma Shares Advance
As of 9:17 a.m. when the benchmark Nifty 50 was trading 0.50% lower:
Sun Pharma rose as much as 5.19%.
Divi's Labs was up 5.28%.
Cipla advanced 4.52%.
Torrent Pharma up 3.10%.
Mankind Pharma rose 4.46%.
Lupin grew 5.98%.
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Pharmaceuticals remain a cornerstone of the India-US bilateral trade ties as we ensure a steady supply of affordable medicines, said Sudarshan Jain, secretary general, Indian Pharmaceutical Alliance.
"Pharmaceuticals have been exempted from tariffs. The decision underscores the critical role of cost-effective, life-saving generic medicines in public health, economic stability, and national security," Jain said.
