US Tariff Impact: Pharma Stocks Soar High In Bearish Market; Here's Why

Pharma Stocks Today: The pharmaceutical stocks are trading in green amid bearish sentiment in the market after Trump's tariff announcement. At a time when Sense, Nifty, and other broader indes are doing business in negative territory, the Nifty pharma index rallied nearly 4% after  US President Donald Trump announced exemptions for the pharma sector in his tariff policy. Shares of Sun Pharma, IPCA and Gland Pharma Labs gained up to 4% in early trade.

The US has announced to imposition of heavy import tariffs on industries like automobile and IT, pharma companies were exempted from it, leading to a rally in pharma stocks in early trade.

Nifty pharma index gains

Following the announcement, the Nifty pharma index rose 4% to hit a one-month high during the morning trade. At around 12:05 pm, the index was trading at Rs 21,501.30, up 2.62%. Among the top gainers, Gland Pharma rose 7%, while Natco Pharma and Lupin gained nearly 5%. Other key players such as Dr Reddy's Laboratories, Cipla, Zydus Life and Biocon also witnessed positive sentiment, strengthening the bullish trend in the sector.

The US will impose a 10% tariff on all imported goods from April 5, while tariffs on countries with large trade imbalances will be even higher. China will be hit with the highest tariff of 34%, followed by India, which has to be hit by 26%. The US administration has imposed a 24% tariff on Japan and a 20% tariff on the European Union. The revised tariffs will come into effect from April 9.

It is worth noting that the US imports nearly a third of India's pharma exports, so this exemption is a significant relief for the sector. The US remains a key market for Indian drugs, with exports growing 16% to $9 billion last year, according to government-backed trade body Pharmexcil.