It’s a party for pharma stocks on Dalal Street. The Nifty Pharma Index is up nearly 4% and Sun Pharma, Gland Pharma and IPCA Labs see gains close to 4% each. Even Lupin and Natco Pharma are rallying smartly. In a major relief, Indian pharmaceutical companies breathed a sigh of relief after US President Donald Trump announced exemptions for the pharma sector in his tariff policy. While industries like automobiles, IT, brace for steep import duties, pharmaceuticals have been spared, pushing pharma stocks higher in early trade.
“India and the U.S. share a strong and growing bilateral trade relationship, with a shared vision to double trade to $500 billion under the Mission 500 initiative. Pharmaceuticals remain a cornerstone of this partnership, as India plays a vital role in global and U.S. healthcare by ensuring a steady supply of affordable medicines,” said Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance (IPA).
“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,” he added.
ALSO READIndia’s pharma sector secures tariff exemption; IPA lauds boost for affordable medicines Nifty Pharma index rallies, All stocks in green
Following the announcement, the Nifty Pharma Index jumped 4%, hitting a one-month high. All 20 stocks in the index opened in the green. Among the top gainers, Gland Pharma surged 7%, while Natco Pharma and Lupin rose 5% each. Other major players like Dr. Reddy’s Laboratories, Cipla, Zydus Life, and Biocon also saw positive momentum, reinforcing the sector’s bullish trend.
US Market – A key driver for Indian Pharma Exports
The US remains the largest market for Indian pharmaceutical exports, accounting for nearly 30% of the sector’s overall shipments. With Trump’s new trade policy imposing a universal 10% tariff on all imports and higher duties for 60 countries, Indian pharma players were bracing for a potential hit. However, with the exemption in place, the sector has managed to avoid a major cost escalation, fueling investor optimism.
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On the other hand, the broader markets faced volatility following Trump’s tariff bombshell, pharma stocks stood out as a bright spot.
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