Stock Market Today: Nifty Pharma Index saw steep cuts of more than 1.8% in the morning trades on Tuesday amidst Trump Tariff concerns: Aurobindo, Cipla, Lupin share prices were among key losers
Nifty Pharma Index opened at 21,672.85 on Tuesday, lower than 21775.75 close on Monday. The Nifty Pharma Index however dipped to lows of 21,359.30 in the morning trades on Tuesday , which translated to steep cuts of almost 2% (1.92%) for the Nifty Pharma Index
Nifty Pharma Index loses on Trump Tarff concerns
The correction in share prices of Indian Pharmaceutical manufacturers were under pressure news flow suggested the US President Donald TrumP will be announcing tariffs on Pharma imports in the US in a few weeks. The US President is likely to announce pharmaceutical tariffs over the next two weeks. Trump has als signed order to boost domestic drug manufacturing as pharma tariffs loom
A Reuters news Report said that U.S. President Donald Trump signed an executive order on Monday that aims to reduce the time it takes to approve pharmaceutical plants in the country, as part of new regulations to encourage domestic manufacturing.
The order as per Reuters News report directs the U.S. Food and Drug Administration to streamline reviews and work with domestic manufacturers to provide early support before facilities come online
Key Loser
Indian Pharmaceutical manufacturers derive large part of their sales from the US markets. Aurobindo Pharma is one such company that derives majority of its sales from The US and hence Aurobindo Pharma was the largest loser in the Pharma Index with share price declining more than 3%.
For Lupin, Cipla, Sun Pharmaceutical Industries’, Dr Reddys Laboratories Ltd, Zydus Lifesciences are the other major Indian companies, whose earnings prospects depend on the US sales growth. Many of these manufacturers have manufacturing facilities in the US also, but large part of drugs are manufactured in Indian plants and exported to the US.
Lupin Share price and Cipla share price also saw steep corrections of 2-3%
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