The Nifty Pharma Index surged 3.74% to 21,737.35, as investors reacted positively to the exemption.
A White House fact sheet confirmed that pharmaceuticals would not be subjected to the new reciprocal tariffs, fueling optimism in the sector. This move comes as a relief to Indian drug manufacturers, many of which export heavily to the US.
Leading the rally, Gland Pharma surged 6.65%, followed by Natco Pharma at 5.31% and Lupin, which gained 4.79%. Other major gainers included Aurobindo Pharma (+4.7%), Sun Pharmaceutical Industries (+4.44%), and Ipca Laboratories (+4.28%).
Several other pharma giants also saw strong gains, including Divi’s Laboratories (+3.59%), Dr. Reddy’s Laboratories (+3.04%), Zydus Lifesciences (+2.98%), Cipla (+2.63%), Granules India (+2.54%), Biocon (+2.22%), Alkem Laboratories (+1.91%), Torrent Pharmaceuticals (+1.86%), Laurus Labs (+1.79%), Ajanta Pharma (+1.73%), Glenmark Pharmaceuticals (+1.67%), Abbott India (+1.39%), JB Chemicals & Pharmaceuticals (+0.69%), and Mankind Pharma (+0.22%).
The United States is India's biggest market for pharmaceutical exports, making the exemption a significant relief for Indian drug manufacturers. However, this does not guarantee that pharmaceutical imports will remain tariff-free indefinitely. The White House’s 2 April agenda did not include industry-specific tariffs, but the media reports suggest that levies on pharma goods could still be introduced at a later stage. The media reports indicate that drugmakers are actively lobbying President Trump to implement any potential tariffs gradually, allowing them time to adjust their manufacturing strategies.