Pharma Stocks Dive Amid Unprecedented Tariffs

Pharmaceutical stocks fell sharply by up to 10% following reports that the Trump Administration will announce unprecedented tariffs on pharma imports. Despite prior exemptions, the move has led to significant drops across major companies. The policy shifts, including a 26% tariff on India, have impacted even high performing stocks.

Shares of pharmaceutical companies took a significant hit on Friday, dropping up to 10% following reports that the Trump Administration is set to impose tariffs on pharma imports. The anticipated measures are described as "unprecedented," suggesting a major shift in U.S. trade policy.

President Trump has indicated that tariffs on both pharmaceuticals and semiconductors will be announced soon. This news resulted in a strong market reaction, with Aurobindo Pharma's stock plummeting 11% to Rs 1,049.85. Laurus Labs wasn't far behind, falling 9.5% to Rs 561.55, while other notable companies like Ipca Labs and Lupin also saw substantial declines.

Meanwhile, amidst the market turbulence, the BSE healthcare index fell by 3.22%, and the BSE Sensex dropped by 0.89%. Initially, these sectors were exempt from reciprocal tariffs, but with the recent policy change, significant impacts are now being felt across the industry, highlighting ongoing U.S.-India trade tensions.

(With inputs from agencies.)