Shares of Sun Pharma, Dr. Reddy’s Laboratories, Gland Pharma, and Cipla surged in early trading, outperforming the broader market downturn.
Shares of major Indian pharmaceutical companies surged on Thursday, defying the broader market decline, after the US administration exempted pharmaceutical products from newly imposed reciprocal tariffs.
The Nifty Pharma index rose 4.3%, standing out as one of the few sectoral indices in positive territory, even as the overall market faced pressure following US President Donald Trump’s announcement of steep tariffs on Indian goods. As part of his broader trade strategy, Trump imposed a 27% tariff on Indian imports, with some nations facing duties as high as 46%. However, pharmaceuticals were spared from the tariff list, providing a crucial boost to India’s drugmakers, which heavily depend on exports to the US.
By 9:35 AM on the Bombay Stock Exchange (BSE), Sun Pharma shares had climbed 5.47% to Rs 1,808, while Dr. Reddy’s Laboratories gained 4.54% to Rs 1,202. Gland Pharma saw an 8% intraday jump, and Cipla advanced by 4%.
The exemption is a significant relief for the industry, as the US imports nearly a third of India’s pharmaceutical exports. According to government-backed trade body Pharmexcil, Indian pharma exports to the US grew 16% last year, reaching $9 billion, reaffirming the country’s strong foothold in the American market.
(Source)