By Kosaku Narioka
Indian drugmaker stocks rose sharply after President Trump's latest tariff announcement left out pharmaceuticals, leading to a relief rally in the sector.
Sun Pharmaceutical Industries rose 4.1% on Thursday, Lupin gained 4.2% and Divi's Laboratories was 2.0% higher. The country's benchmark index Sensex was down 0.3%.
Trump didn't announce pharmaceutical tariffs when he unveiled the latest U.S. trade plans on Wednesday, and language in the executive order indicated that medicines were exempt from the reciprocal tariffs.
Trump had said he was going to impose pharmaceutical tariffs at some point --a move that could affect the many generic drugs made in India as well as branded medicines imported from countries like Ireland.
Jefferies analysts said in a note that an order focused on pharmaceutical products at a later date can't be ruled out. However, they said that India's generic pharmaceutical industry may be spared as they believe the industry is helping lower drug costs in the U.S.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
04-03-25 0243ET
