The Nifty Pharma index crashed practically 6 per cent on Monday, April 7, as fears of renewed US tariffs on generic drug exports triggered a broad selloff within the sector.
The index dropped to 19,425 in early commerce, led by steep declines in key exporters like Gland Pharma, Divi’s Laboratories, and Laurus Labs, all of which tanked over 11 per cent intraday.
The sharp fall comes amid rising considerations that the US might impose steep reciprocal tariffs on Indian pharmaceutical imports, notably generics. This transfer, if executed, may considerably elevate drug prices for US customers whereas immediately hitting India’s pharma exporters, who dominate the worldwide generics market.
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India’s pharma exports to the US, its greatest market, are largely composed of low-cost generic formulations.
Any import tariffs may damage competitiveness, pressure provide chains, and delay approvals for newer filings, analysts warned.
Gland Pharma was the worst hit, sliding over 11.4 per cent, adopted by Divi’s Labs and Laurus Labs, each down greater than 10 per cent in early commerce. Solar Pharma, Cipla, Aurobindo Pharma, and Lupin additionally noticed sharp cuts within the vary of three–6 per cent.
Investor sentiment has additionally been hit by broader market volatility triggered by Donald Trump’s aggressive tariff strikes throughout sectors. With reciprocal duties from international locations like India and China anticipated to roll out this week, pharma has emerged as a frontline casualty resulting from its deep export publicity.
Analysts consider that the correction in pharma shares may deepen if the tariff regime materializes and not using a waiver or if regulatory approvals from the US FDA face any retaliatory delays.
At 9:45 am, Nifty Pharma was buying and selling down 5.8 per cent at 19,460. Specialists count on short-term volatility to stay elevated, with a detailed watch on government-to-government negotiations and readability on US commerce actions.
India exported over $6.5 billion price of pharma merchandise to the US in FY24. A tariff of even 10–15 per cent may deeply affect revenue margins for corporations closely depending on US gross sales.
