Nifty Pharma cracks 6% as Trump signals fresh tariffs at never seen before level; Aurobindo Pharma shares tank 10%

Nifty Pharma dropped 6% during Friday's session following comments from US President Donald Trump, who indicated that the pharmaceutical sector is being categorized separately and that he would be revealing pharmaceutical tariffs in the near future.

According to media reports, Trump, while talking to journalists aboard Air Force One, mentioned that pharma tariffs will be set at unprecedented levels. We are considering pharmaceuticals as an individual category. An announcement regarding this will be made in the near future, not too far off. It is currently under examination.

As a result, pharma stocks have relinquished all the profits they achieved on Thursday. Indian pharma companies experienced a rise on Thursday, April 3, following Trump's announcement that exempted the industry from the newly imposed tariffs. Nevertheless, it was evident that this reprieve will be temporary. Previous signals indicated that the tariffs specific to the sector would not be included in the April 2 event held in the Rose Garden.

The Trump Administration plans to review the pharmaceutical and semiconductor industries under Section 232 of the Trade Expansion Act of 1962, which authorizes the US Government, particularly the President, to take necessary measures to limit imports of goods considered a threat to national security.

Pharma Stocks today

Pharma stocks experienced a decline of 2%-7% today, with IPCA Laboratories, Laurus Labs, Aurobindo Pharma, and Lupin at the forefront of this downward movement.

Nifty Pharma slumped over 6%, the indices opened at 21,430.95 levels, touched an intraday low of 20,089.45, and an intraday high of 21,431.20. Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One stated that yesterday's morning gains failed to cross 200 dsma and now we are seeing major selloff , with prices down more than 5%, for now volatility is higher in this space, with 20,000 as next support followed by 19,500 the previous swing low, for now traders are advised to wait and watch for this space.

Further Anshul Jain, Head of Research at Lakshmishree Investment and Securities, added that the immediate support lies at 19,650, aligning with the 20-month moving average on the monthly charts, making it a critical level to watch. A breach below 19,600 will confirm a fresh downtrend, potentially shifting the index into a long-term bearish structure similar to the IT and FMCG indices. If the support holds, a short-term bounce is possible, but sustained weakness could lead to deeper corrections.

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