Nifty Pharma sole sectoral gainer as investors await clarity on Trump tariffs; Ajanta Pharma, Ipca Labs lead gains

Export-oriented pharma stocks will likely benefit from the easing trade tensions.

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26 Aug, 2025 12:21

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Pharma stocks recorded strong gains on June 12, dodging the overall downturn in the market. The sharp rise in the share prices pushed the Nifty Pharma index up nearly 1 percent to hover around 22,243 in the morning, emerging as the only sectoral gainer among the major indices.

The rise in the pharma stocks comes on the back of easing global trade tensions, with US President Donald Trump announcing that the trade deal between US and China is "done". Export-oriented pharma stocks will likely benefit from the easing trade tensions.

US President Donald Trump took to social media on June 11 to announce that US has finalized a new deal with China. "We are getting a total of 55% tariffs, China is getting 10%." The details of the tariff arrangement are yet to be explained and understood," he wrote in a post on Truth Social.

Ajanta Pharma shares gained nearly 3 percent to trade at Rs 2,722 apiece. The stock has gained nearly 10 percent in the past one month, but is down over 9 percent so far in 2025.

J B Chemicals and Pharmaceuticals shares jumped nearly 2 percent to trade at Rs 1,748.80 apiece. Ipca Laboratories, Sun Pharma, Dr Reddy’s Laboratories and Glenmark Pharma shares meanwhile gained over 1 percent each.

Divis Labs, Torrent Pharma, Mankind Pharma, Aurobindo Pharma and Lupin shares were trading nearly 1 percent higher, while Zydus Life, Natco Pharma, Cipla, Alkem Labs and Abbot India shares were trading in the green with marginal gains.

Also read: Zydus Lifesciences shares gain after USFDA issues EIR to Ankleshwar facility

Although the easing tariff tensions between US and China seem to be a positive for the pharma stocks, analysts suggest caution. "The tariff crisis is not over yet. With Trump's credibility being what it is, it would be too early to discount the development as a positive for markets," said VK Vijayakumar, chief investment strategist at Geojit Investments.

US President Donald Trump on June 11 said he will set unilateral tariff rates within two weeks. "At a certain point, we're just going to send letters out. And I think you understand that, saying this is the deal, you can take it or leave it," Trump told reporters on June 11. Investors will now actively look for updates regarding US-India bilateral trade agreement (BTA).