Pharma stocks fall: Today there is greenery in the domestic market, but pharma shares are being sold. The shares of the Nifty Pharma Index have broken up to 10 per cent. The reason for this is US President Donald Trump who has proposed to impose tariffs on the import of auto, pharma and chip in the US from 1 April 2025. Due to this, pharma shares shivered and all 20 of its stocks had turned red once in intra-day. The biggest decline came in Aurobindo Pharma, which fell around 10 per cent in intra-day. Apart from this, Zydus Life, Lupin and Dr. Reddy also fell more than 5-5 percent. The Nifty 50 also had three pharma stocks among the top-5 loses.
Why shock more pharma stocks than Auto stocks from tariffs?
US President Donald Trump has announced a 25 % tariff on drug, car and chip imports. These fees will be charged from April 2. Trump has also threatened to put tariffs on imports of cars but despite this, the auto sector stocks did not suffer much shock as it was to the pharma sector. The reason for this is that according to the report of SBI Research data, the car’s share in exports from India is only 0.2 per cent but the export of pharma sector is more than 38 per cent. For this reason, the pharma sector has suffered more shock due to tariff threats.
Which pharma companies will get less shock?
Right now American medicines are charged 10 percent duty in India and if the US also imposes 10 percent tariff on Indian medicines, then according to Nuwama’s report released on February 15 You may have to cut 6.5 percent. However, companies like Sun Pharma and Torrent Pharma will not have much impact as their dependence on American generic cells is low. Despite the uncertainty associated with the tariff, the CEO of Kotak Institutional Equities and the Ko-Hed Prateek Gupta remains confident in the Indian pharma sector.
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