Nifty Pharma index has experienced a significant decline of over 7% in the past three days
Nifty Pharma index continued its downward trend for the third consecutive session on Tuesday, January 28th, dropping nearly 3% in intraday trading. Shares of Granules India, Biocon, Sun Pharma, and Lupin were among the top losers. The index opened at 21,266.80, down from its previous close of 21,292.30, and fell by 2.90% to 20,673.80. By 11:15 AM, the index was down by 2.44% at 20,772.85, while the benchmark Nifty 50 was up by 0.54%.
The Nifty Pharma index has seen a significant decline of over 7% in the last three days, and on a monthly scale, it has dropped by nearly 12% compared to a 3% fall in the Nifty 50.
The recent decline in pharma stocks can be attributed to concerns surrounding US President Donald Trump’s trade policies and disappointing Q3 earnings. Indian pharma companies have been facing challenges such as increased US FDA scrutiny and rising distribution costs in the US during Trump’s first term. There are fears that his second term could bring further difficulties for the Indian pharma industry.
Prashanth Tapse, Senior VP (Research) at Mehta Equities, highlighted the challenges faced by Indian pharma companies during Trump’s first term, including heightened US FDA scrutiny and rising distribution costs. The recent underperformance of the industry, with eight out of ten major pharma companies reporting earnings below expectations in Q3, indicates a challenging road ahead.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.