NIFTY Pharma Slides Over 2% As Sun Pharma, Dr Reddy’s, Divi’s, Aurobindo And Gland Drag Index

Mumbai, September 26: The pharmaceutical sector experienced aggressive selling pressure on Friday. Amidst the pressure, the industry is seen pulling down the NIFTY Pharma index by 2.17% to 21,521.90 at 2:00 pm IST. The index had closed at 21,977.70 in the previous session and opened lower, remaining weak for the day.

Broad-Based Decline Across Major Stocks

The decline was across the sectors, with 16 stocks in negative territory and only three showing gains. Sun Pharma fell 2.94% to ₹1,579.60, becoming the biggest downer on the index. Divi’s Laboratories also slumped 3.03% to ₹5,718.50, while Dr. Reddy’s slipped 1.27% to ₹1,259.00.

Aurobindo Pharma declined 1.07% to ₹1,085.30 while Gland Pharma declined 1.48% to ₹1,943.60. Biocon, Zydus Lifesciences, Natco Pharma, and Laurus Labs were among other substantial losers, notching declines of greater than 7%. The index turnover was ₹3.08 crore, and volume was 2.32 lakh shares.

Wider Market Sentiment

The downturn in the pharmaceutical sector has an impact on the overall sentiment, as the NIFTY 50 index decreased 0.97% to settle at 24,648.70. Regardless of pharmaceuticals, the index exhibited broader weakness (i.e., the 30-day and 1-year drawdowns were 1.72% and 5.22%, respectively). There is clearly continuing stress across the global sector.

Tariff Shock From The U.S.

Policy issues also contributed to the sudden decline after the announcement by then-U.S. President Donald Trump of tough tariffs on imported drugs. As of October 1, 2025, imports of patent or branded drugs will be subject to a 100% tariff, except for companies involved in building U.S. manufacturing facilities. Experts warn that generics can be exempted, but specialty drugs and complex generics can be placed in gray areas of regulation, thus raising the stakes for Indian players.

Indian Pharma At A Crossroads

As the largest export market for India, valued at $3.7 billion in the first half of 2025, India anticipates challenges in revenue visibility for companies such as Sun Pharma, Dr. Reddy’s, Lupin, and Aurobindo.

Outlook

There is a possibility that Indian pharma stocks will not settle until there is clarity concerning whether tariffs can be applied. Single market regulatory and policy risks may slow down earnings, and companies with diversified markets and manufacturing projects located in the U.S. will have a higher chance of facing the challenges ahead.

REF: https://www.nseindia.com/market-data/live-equity-market?symbol=NIFTY PHARMA

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