CHENNAI: Pharma stocks led the decline in Indian markets on Friday, (September 26), with the Nifty Pharma index slipping sharply into negative territory. The sell-off was triggered by the US government’s announcement of a 100 percent import tariff on patented and branded drugs starting October 1, a move that rattled investors and raised concerns over the future of Indian pharmaceutical exports.
Although Indian companies primarily export generic drugs to the US, the sweeping tariff decision has created uncertainty about whether future trade measures could extend to other categories such as complex generics or biosimilars. The announcement prompted a wave of selling across the sector, with all 20 constituents of the Nifty Pharma index trading lower in early deals. Heavyweight Sun Pharma was among the biggest drags, while Cipla, Biocon, Natco Pharma, and Laurus Labs also lost between 2 and 5 percent.
The weakness in pharma came against a backdrop of fragile market sentiment. Global equities were under pressure as Asian stocks edged lower and investors turned cautious ahead of fresh US economic data and Federal Reserve signals. Continued foreign portfolio outflows added to the negative undertone in Indian markets, intensifying the fall in vulnerable sectors like pharma and IT.
Technical indicators also suggested weakness in the sector. Analysts noted that the Nifty Pharma index was already struggling near key support levels, and the tariff announcement accelerated the downside momentum. Some technical projections even warned of steeper corrections in select stocks if support zones fail to hold.
The combined impact of US trade actions, weak global cues, and bearish technical trends left the Nifty Pharma index firmly in the red on Friday, underscoring the vulnerability of India’s drug makers to policy shocks in their largest export market.