Last Updated:July 08, 2025, 12:48 IST
Shares of Indian pharma companies fell on July 8 as investor concerns resurfaced following US President Trump’s announcement of new tariff
Indian pharma stocks
Pharma Stocks Fall: Shares of Indian pharma companies fell on July 8 as investor concerns resurfaced following US President Donald Trump’s announcement of new tariff letters to 14 countries. The revised import duties, which take effect from August 1, weighed heavily on market sentiment. The Nifty Pharma index dropped nearly 1% to hover around 22,159 in morning trade.
Trump’s letters, which outline elevated tariff rates, are expected to be followed by additional notifications throughout the month. The timing has sparked concerns that India may receive a similar letter before it finalises its long-pending trade agreement with the US. Several trade issues remain unresolved, keeping the deal from being concluded.
Pharmaceutical companies in India earn a substantial portion of their revenues from exports to the US. Higher tariffs could significantly impact their margins, contributing to the decline in pharma stocks today.
Among the biggest losers, Aurobindo Pharma fell over 3% to trade at Rs 1,147 per share, while Lupin declined nearly 3% to Rs 1,925. Shares of Dr Reddy’s Laboratories and Zydus Lifesciences were down over 1.6% each. Other laggards included Granules, Sun Pharma, Cipla, and Torrent Pharma, each falling more than 1%.
Ajanta Pharma, Laurus Labs, and Glenmark Pharma saw losses of over 0.6%, while Biocon and Alkem Labs also traded in the red, though with smaller cuts. On the other hand, some stocks bucked the trend. Divi’s Labs, Mankind Pharma, Natco Pharma, IPCA Labs, Gland Pharma, and Abbott India traded in positive territory.
This marks the second straight day of losses for the Nifty Pharma index after a 10-session winning streak. Analyst downgrades also contributed to the pressure. According to a Zee Business report, Macquarie downgraded Aurobindo Pharma to ‘underperform’ and Dr Reddy’s Labs to ‘neutral.’
Separately, Nomura noted that the Indian Pharma Market (IPM) grew 8% year-on-year in June — the fastest pace in five months. Within its coverage, IPCA Labs and Sun Pharma reported 12% growth, followed by Torrent Pharma, Dr Reddy’s, and Glenmark Pharma at 11% each.
Despite the short-term concerns, some analysts see potential upside. Bhavik Joshi, Business Head at INVasset PMS, said Trump’s broad-based tariffs, with rates up to 40%, could present an opportunity for Indian pharma firms. With the US actively trying to reduce reliance on Chinese pharmaceutical supplies — including CDMO/CMO services — India stands to benefit, given its scale, compliance record, and expanding API production under PLI incentives.
However, Joshi also cautioned that risks remain. “A renewed push for ‘Buy America’ could pressure low-margin generics, while tougher regulatory scrutiny might weigh on sentiment. We could see selective outperformance, where firms with strong compliance, diversified products, and CDMO capabilities gain more than others,” he added.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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