Pharma Index Slumps as Trump’s Tariff Threat Sparks Panic; Aurobindo, Lupin Slide

June 17, 2025: Indian pharmaceutical counters faced a sharp selloff on Tuesday after former US President Donald Trump reiterated his aggressive stance on potential import tariffs targeting the pharma sector. The Nifty Pharma index slumped 1.89%, settling at 21,622.80, with 19 out of 20 stocks ending in negative territory. The index displayed high intraday volatility, touching a low of 21,516.95 before clawing back some losses by the close.

Aurobindo, Lupin, Granules Among Worst Hit in Broad-Based Meltdown

Aurobindo Pharma led the decline, slipping 3.09% to ₹1,110. Other key laggards included:

• Granules: down 3.81%
• Lupin: down 3.6%
• Natco Pharma: down 3.42%
• Laurus Labs: down 3.12%
• Ajanta Pharma: down 2.47%
• Divi’s Labs: down 2.36%
• Zydus Lifesciences: down 2.09%
• Dr. Reddy’s: down 2%
• Sun Pharma: down 1.91%

Abbott India was the only gainer, inching up 0.47% to close at ₹31,825.

Trading volumes were intense, with total turnover in the Nifty Pharma index reaching ₹3,539.88 crore, and overall traded shares crossing 3.25 crore during the session.

US Market Exposure Raises Red Flags for Indian Pharma Giants

Investor sentiment turned sharply negative following Trump’s revived comments suggesting extreme tariffs on pharmaceutical imports. The US is a vital revenue stream for Indian drug manufacturers, accounting for around one-third of their exports. Companies with the highest dependency include:

• Aurobindo Pharma: 45% of revenues from the US
• Lupin: 38%
• Sun Pharma: 35%

These firms are now perceived as highly exposed to geopolitical risk, given the prospect of disruptive trade barriers.

Tariff Fears Reignite as Trump Repeats “Unseen Before” Duty Levels

The remarks, first made during Trump’s Air Force One briefing in April, resurfaced this week, sending shockwaves through pharma counters. He warned of “tariffs coming in at levels never seen before”, specifically targeting pharmaceutical imports. These duties are currently under consideration and may be introduced under Section 232 of the US Trade Expansion Act, which permits tariffs on grounds of national security.

Nifty Pharma Index — Daily Snapshot (June 17, 2025)

• Opening: 22,029.15
• Day’s High: 22,057.15
• Day’s Low: 21,516.95
• Closing: 21,622.80
• 1-Month Gain: +1.88%
• 1-Year Return: +10.78%
• 52-Week High: 23,907.90
• 52-Week Low: 19,121.10
• Advancers: 1
• Decliners: 19

Tariff Shockwaves Likely to Persist Amid Heated US Political Climate

With US elections approaching, escalating protectionist rhetoric continues to rattle global markets. Indian pharma stocks remain particularly vulnerable as global investors reassess their exposure to companies with significant US market dependency. The potential invocation of Section 232 only intensifies the uncertainty clouding the sector.

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