Indian pharmaceutical companies with substantial exposure to the US witnessed a surge of up to 14 percent on today’s trading session, after US President Donald Trump exempted pharmaceutical products from reciprocal tariffs in the sector. The Nifty Pharma index jumped by as much as 5 percent in early trading on Thursday trading session, marking its largest single-day gain since September 2020.
Previously, the US President had hinted at potential levies on pharmaceuticals, semiconductors, and other sectors. However, while he imposed a 25 percent tariff on automobile imports and related components, the pharmaceutical sector was spared. At present, India imposes a 10 percent tariff on pharmaceutical imports from the US, whereas the US does not levy any tariff on Indian pharmaceutical products.
“The decision underscores the critical role of cost-effective, life-saving generic medicines in public health, economic stability, and national security,” commented Sudarshan Jain, the Secretary General of the Indian Pharmaceutical Alliance (IPA).
Here are some pharmaceutical stocks that surged up to nearly 14 percent today following Trump’s decision to exempt the sector from tariffs:
- Gland Pharma Limited: The stock reached an intraday high at Rs. 1,755 on BSE, up by nearly 14.3 percent on Thursday, compared to its previous closing price of Rs. 1,535.1 with a market cap of Rs. 26,288.5 crores.
- Aurobindo Pharma Limited: The shares of an integrated global pharmaceutical company jumped by 9.4 percent to Rs. 1,267.95 on Thursday, with a market cap of Rs. 69,405.8 crores.
- Dr Reddy’s Laboratories Limited: With a market cap of Rs. 96,784 crores, the stock moved up by around 7 percent to hit an intraday high at Rs. 1,226.9 on BSE, during Thursday’s trading session.
- Lupin Limited: With a market cap of Rs. 95,531.7 crores, the stock surged about 7 percent to hit an intraday high at Rs. 2,149.2 on Thursday, as against its previous closing price of Rs. 2,009.4.
- Zydus Lifesciences Limited: The shares of a global innovation-driven healthcare company jumped by 6.6 percent to Rs. 949.85 on Thursday, with a market cap of Rs. 91,361 crores.
- Sun Pharmaceutical Industries Limited: The shares of the world’s leading specialty generics company jumped by 6 percent to Rs. 1,812.4 on Thursday, with a market cap of Rs. 4.28 lakh crores.
- Cipla Limited: The stock reached an intraday high at Rs. 1,522.1 on BSE, up by nearly 5 percent on Thursday, compared to its previous closing price of Rs. 1,452.7, with a market cap of Rs. 1.21 lakh crores.
Written by Shivani Singh
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