Pharma Stocks in Focus: Nifty Pharma Index Down Nearly 7%

On April 7, 2025, the Nifty Pharma index dropped by as much as 7% in early trading, bringing its year-to-date decline to 14%. The index reached an intraday low of 19,121.10, compared to its previous close of 20,560. 

Why is Nifty Pharma Index Down Today?

On April 2, President Trump announced sweeping reciprocal tariffs affecting 60 countries, but initially excluded the Pharma sector, allowing the sector to outperform. However, the sector was hit the following day with the news of tariffs on drug imports into the U.S.

“Pharma tariffs are going to be introduced at levels you haven’t seen before. We’re considering pharmaceuticals as a separate category. We’ll be announcing this in the near future, as it’s currently under review,” Trump said while speaking to reporters aboard Air Force One.

At present, India imposes a 10% tariff on pharmaceutical imports from the U.S., while the U.S. does not levy any tariff on imports of pharmaceuticals from India.

Pharma Shares Slides Heavily

Shares of Indian pharmaceutical companies, such as Gland Pharma Ltd., Glenmark Pharmaceuticals Ltd., Laurus Labs Ltd., and Biocon Ltd., dropped by up to 8% on April 7, following President Trump’s comments on upcoming tariffs for the sector. Other drugmaker shares also saw declines ranging from 2% to 6%.

At 11:05 AM, Top losers on the Nifty Pharma Index included Ipca Labs, Biocon, Granules, Gland Pharma and Divis Laboratories.

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