Aurobindo Pharma, Lupine to Natco Pharma: Why is Nifty Pharma Index being nosing today? Explain | Einsmark news

Indian pharmaceutical stocks tumbled sharply on Tuesday, June 17, after US President Donald Trump warned that tariffs on pharmaceutical imports would be imposed ‘soon. The Nifty Pharma index dropped more than 2 percent to a low of 21,516.95, making it the sector that performs the worst. This latest development has caused widespread sale, with the fear of revenue disruption for Indian drugs that depends a lot on the US market. Trump’s tariff threat Roils Market Sentiment The primary trigger for the sale was President Trump’s statement to reporters that his administration would soon roll out tariffs that specifically target pharmaceutical imports. It comes a few weeks after he first indicated in April. Market participants fear that Indian drugs, which export a significant part of their generic and specialty medicine to the US, could be severely affected. According to Avinash Gorakshkar, head of research at Bristmart Securities, is expected to have key companies such as Lupine, Aurobindo Pharma, Cipla, Dr. Reddy’s Laboratories and Zydus Lifeciences will experience considerable pressure. “These businesses get a large part of their earnings from the US, and any tariff laying can end up and affect future guidance,” he said. Broad -based sale over pharmaceutical counters The impact was broadly based on the pharmaceutical index. Shares of Aurobindo Pharma, Lupine and Granules India emerged as the top losers, which dropped more than 3 percent each. Other notable losers were Natco Pharma, Laurus Labs, Divi’s Labs, Sun Pharma and Dr Reddy’s laboratories, all of which dropped more than 2 percent. Pharma majors such as Zydus Lifesciences, Glenmark Pharma, Ajanta Pharma, Cipla, Biocon, Alkem Labs and IPCA labs have also seen cut more than 1 percent, reflecting the deep investors’ concerns. The index has now listed losses in three out of the last four trading sessions, highlighting sustained pressure in the sector. Tariff voltages have been building since April. This is not the first time that Trump’s rhetoric has influenced pharmaceutical stocks. Early in April, when he first flowed the idea of ​​pharmaceutical rates, the markets had already responded with concern. Trump said at the time: ‘The pharmaceutical [tariffs] I think, I think, a level you haven’t seen before. ‘The lack of clarity has since had temporarily stabilized investor sentiment, but the latest statement has regained anxiety. The renewed trading tension comes on the heels of Trump’s abrupt departure from the G7 summit in Canada and speculation about its foreign policy approach. The pharmaceutical tariff announcement, which is carefully followed on the heels of that denial, can be part of a broader strategic shift before the upcoming US election. The exposure in the sector is expected to be high as the rate of tariff implementation.