Sun Pharma Share Price: Shares of domestic pharmaceutical companies came under pressure amid the imposition of a fresh round of tariffs on the import of pharmaceutical goods to the US. The Nifty Pharma index extended its losing streak for the fifth straight day.
Major constituents of the index such as Sun Pharma and Cipla Ltd fell significantly in early trade. Sun Pharma share price declined nearly 5 per cent to Rs 1548 apiece on the NSE in early trade. Cipla share price declined over 2 per cent to Rs 1509.7 apiece on the NSE.
Nifty Pharma Under Pressure
The Nifty Pharma index has declined consistently in the past five sessions, the index has cracked over 5 per cent from 22686.6 level on September 19 to 21426.3 on September 26.
Prior to the actual tariff announcement by US President Donald Trump the pharmaceutical sector was already facing uncertainty due to a shift in US policy stance such as the announcement of the H-1B Visa fee hike. However, on September 26, pharmaceutical stocks came under pressure due to an announcement by US President Donald Trump regarding the import of pharmaceutical stocks to the US.
“Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America. “IS BUILDING” will be defined as, “breaking ground” and/or “under construction.” There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started. Thank you for your attention to this matter!,” Trump wrote in his post.
US President Donald Trump wrote in his post on Truth Social that the US will be imposing a 100 per cent tariff on the import of all branded or patented pharmaceutical products. He added only companies with manufacturing plants in the US will be exempt from the tariffs. The tariffs are set to become effective from October 1, 2025.
The latest tariff announcement acted as a headwind for domestic pharmaceutical companies leading to a decline in their stock prices. The announcement has also led to a dampening of investor sentiments due to the heightened uncertainty around the future of the Indian pharmaceutical sector which relies heavily on the US as an export market.
In early trade, all 20 constituents of the Nifty Pharma index traded in the red. Shares of Natco Pharma, Laurus Labs and Sun Pharmaceuticals fell the most, trading lower by 3.72 per cent, 3.45 per cent and 3.29 per cent respectively. Shares of Gland Pharma, IPCA Laboratories, Biocon and Zydus Lifesciences traded lower by as much as 3.17 per cent.
The top-five constituents of the index in-terms of weightage dragged the index lower. The top-constituents which include Sun Pharmaceutical, Cipla Ltd, Divi's Laboratories Ltd, Dr. Reddy's Laboratories Ltd and Lupin Ltd traded lower in the range of 3.28 per cent to 1.33 per cent at the time of writing.
(This is a developing story)
