Overview

• The Nifty Pharmaceuticals Index dropped 2.05% at market open, contrasting with a 2.6% rally in Sensex and Nifty indices.
• President Trump announced an executive order to cut US prescription drug prices by 30%–80% and implement a Most Favoured Nation policy to align US drug costs with the lowest global prices.
• Sun Pharma shares fell 7%, with other major Indian pharma companies like Aurobindo, Biocon, Lupin, and Glenmark seeing declines of 3%–4%.
• Investors remain cautious as clarity on potential US import tariffs for pharmaceuticals is still awaited.
• Indian markets overall continue to benefit from near six-year low inflation and sustained foreign inflows, despite volatility in the pharma sector driven by US policy changes.