Indian pharma stocks were among the top gainers on Thursday morning after the sector was excluded from the newly announced reciprocal tariffs by the Trump administration. The sharp rally reflects relief across the market that Indian pharmaceutical exports—especially generics—will continue to enjoy access to the U.S. market without new trade barriers, at least for now.
As of 9:15 AM, major pharma names saw strong opening gains:
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Aurobindo Pharma surged +8.14% to ₹1,252.10
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Dr. Reddy’s Labs jumped +6.21% to ₹1,221.40
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Lupin climbed +4.94% to ₹2,109.05
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Zydus Life gained +4.90% to ₹934.85
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Divi’s Labs was up +4.64% at ₹5,928.95
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Sun Pharma rose +4.62% to ₹1,792.90
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Cipla and Glenmark were up over 4% and 3.5%, respectively
The broader sectoral sentiment was boosted by Citi, Jefferies, and Macquarie’s recent notes, with brokerages flagging the absence of direct pharma tariffs as a key near-term positive. Jefferies expects a rally in U.S.-focused generic drugmakers, while Citi called the exclusion “in line with expectations” and Macquarie emphasized that pharma forms 14% of India’s total exports to the U.S.
While the relief is evident, Jefferies also cautioned that pharma-specific tariffs in the future cannot be ruled out entirely. However, for now, the Indian pharma sector appears to have dodged a major policy risk, fueling strong interest among investors.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock market investments are subject to market risks. Please consult a qualified financial advisor before making any investment decisions.
