Shares of Natco Pharma surged 5.07% to ₹847.45 in Wednesday’s trade, following relief in the pharma sector after U.S. President Donald Trump confirmed that pharmaceutical products would be excluded from the newly announced 26% reciprocal tariffs.
During the “Liberation Day” announcement, Trump imposed a broad 26% tariff on Indian imports citing trade barriers and currency manipulation. However, the White House later clarified that pharma, copper, semiconductors, and lumber would not be subjected to these duties.
Brokerages such as CLSA and Jefferies have taken a cautiously optimistic stance. Jefferies highlighted that generic-focused Indian pharma players are temporarily shielded due to the U.S. government’s priority to keep drug prices low. The brokerage expects a sentiment-driven rally in pharma stocks with high U.S. exposure.
According to market experts, Natco Pharma derives nearly 70% of its revenue from the U.S. market, putting it among the most exposed but also most likely to benefit from this exemption in the short term.
Jefferies has warned that pharma-specific tariffs cannot be ruled out entirely in the future. However, for now, Indian exporters in the generics space remain in a safe zone.
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