On Tuesday, September 29, the Nifty Pharma index surged 1.01% to an intraday high of 27,032.40 points, up from 26,761.65 points at the previous equity market close, as investors reacted to the United States’ decision to exempt certain speciality drugs from a 100% import duty. The exemption covers 20 jurisdictions, including India, Argentina, Bangladesh, the European Union, South Korea, Switzerland, Liechtenstein, Taiwan, Thailand, the United Kingdom, Japan and Vietnam, and applies to drugs and associated ingredients such as orphan drugs, nuclear medicines, plasma‑derived therapies, fertility drugs, cell therapy products, gene therapy products, antibody drug conjugates and medical countermeasures related to chemical, biological, radiological and nuclear threats, as well as animal health products. This policy change is expected to provide significant relief to eligible Indian drugmakers, who will enjoy zero import duty in the United States, the country’s primary export market for domestic pharmaceutical companies.

The sectoral benchmark index retracted some of its gains after touching intraday highs but remained 0.43% higher at 26,876.95 points as of 10:31 a.m. (IST) during the market session. Mankind Pharma, Dr Reddy’s Lab, Gland Pharma and Abbott India were among the stocks that gained during the session, with intraday gains of 3%, 2.1%, 2.2% and 4.1% respectively. Mankind Pharma’s intraday high reached ₹2,510, Dr Reddy’s Lab hit ₹1,247.70, Abbott India rose to ₹27,850 and Gland Pharma peaked at ₹2,961.10. These gains contributed to the overall 1% rise in the Nifty Pharma index.

NSE data also showed that the Nifty Pharma has been witnessing significant support from defensive bets of investors, gaining 6.73% in the last three months, outpacing the benchmark NIFTY50 returns of around -5% in the same period. Market experts predict that rising demand, increased affordability and innovation opportunities are expected to support the longer‑term outlook for the broader industry. The exemption move follows US President Donald Trump’s directive earlier this year in April to impose a 100% import tariff on certain patented pharmaceutical products and related ingredients from September 29, which was subsequently mitigated by the tariff exemption for the 20 listed countries.

The official filing by the US Department of Commerce highlighted the pharmaceutical products and a list of 20 jurisdictions that are eligible to receive an ad valorem tariff rate of zero pursuant to Presidential Proclamation 11020 of April 2, 2026. The exemption covers defined categories of medicines and their manufacturing inputs, rather than all pharmaceuticals imported from the countries under the Commerce Department list. Drug makers originating from the listed 20 countries will enjoy the benefit of exporting to the United States amid a rising demand for these items in the market.

The table of pharma stocks in focus today shows intraday highs and gains for several companies. Mankind Pharma’s intraday high was ₹2,510 with a 3% gain and a 5‑day return of 1.1%. Dr Reddy’s Lab reached ₹1,247.70 with a 2.1% gain and a 5‑day return of 2.6%. Abbott India peaked at ₹27,850 with a 4.1% gain and a 5‑day return of 1.6%. Gland Pharma’s intraday high was ₹2,961.10 with a 2.2% gain and a 5‑day return of 1.3%. Other stocks such as IPCA Laboratories, Piramal Pharma, Sun Pharma, Biocon, Lupin and Cipla also recorded gains ranging from 1% to 4.1% and varied 5‑day returns.

Investors should note that the exemption covers specific categories of medicines and their manufacturing inputs, and not all pharmaceuticals imported from the countries listed by the Commerce Department. The policy change is expected to provide significant relief to eligible Indian drugmakers, who will enjoy zero import duty in the United States, the country’s primary export market for domestic pharmaceutical companies. The exemption move comes after the US imposed a 100% import tariff on certain patented pharmaceutical products and related ingredients from September 29, a measure that was later mitigated by the tariff exemption for the 20 listed countries.