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India Phrama Stocks Under Pressure Due To Trump's Tariff Threat | Editors' Roundtable

The round‑table focused on rising concerns that the Trump administration could levy up to 100% tariffs on imported branded and patented medicines, a move that would directly affect Indian pharmaceutical exporters. Traders reacted by pushing the India pharma index down roughly 5% in a session where broader market indices fell even more sharply. Panelists noted that generic manufacturers appear insulated from the tariff threat, while companies with significant branded portfolios—such as Sun Pharma—could face headwinds unless they negotiate price‑guarantee deals with U.S. regulators. The sector’s relative outperformance, down only about 5% versus a 20% slump in IT, reflects its non‑cyclical nature and the recent rupee depreciation that boosts export margins. Nimsh highlighted pharma as a “new safe haven,” citing investors’ shift toward export‑oriented drug makers amid AI‑driven disruptions in the IT space and a broader business‑cycle dip. He argued that the sector’s resilience could add a few basis points to its performance, provided the tariff outlook remains ambiguous. If the tariff proposal materialises, investors may re‑allocate capital toward generics while monitoring Sun Pharma’s pricing negotiations. Conversely, a muted U.S. stance could reinforce pharma’s defensive appeal, especially as geopolitical tensions in West Asia and currency volatility persist.