Indian pharma stocks fell sharply on Friday following US President Donald Trump’s announcement of a 100% tariff on branded pharmaceutical imports. The move sparked concerns among investors, leading to a broad sell-off in the sector. The Nifty Pharma index dropped 2.4% in early trade, with all 20 constituent stocks in the red.
Sun Pharma fell 2.94% to Rs 1,548, Cipla declined 1.92% to Rs 1,475, and Dr. Reddy’s Laboratories slipped 1.17% to Rs 1,275. Analysts said the reaction was largely sentiment-driven, as Indian pharmaceutical companies primarily export generic medicines, which are not immediately affected by the new tariff.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, explained that while Trump’s tariff announcement targets branded drugs, it has created short-term market volatility. “The risk to India’s generic drug exports is limited, but investor sentiment has been rattled,” he said.
Apart from the tariff news, foreign institutional investor (FII) outflows added pressure on the market. Despite the current downturn, experts suggest long-term prospects for pharma remain strong. Investors may view the dip as an opportunity to accumulate high-quality stocks driven by domestic demand and global growth.
The decline in Sun Pharma, Cipla, and Dr. Reddy’s highlights how geopolitical events and trade policies can impact sensitive sectors like healthcare. While the immediate impact is sentiment-based, ongoing US trade policies may continue to influence pharma stocks in the coming months.
