Nifty Pharma Bucks a Deep Red Market as Select Drugmakers Get Relief From Today's US Tariff Deadline

Nifty Pharma up 0.41% (29 Sep, 11 AM), best-performing index amid a deep red market. Abbott India up 2%. Mankind Pharma up 2.5%. Dr Reddy's up 1.8%. US tariffs effective today.

Updated: 29 Sept 2026 • 11:31 am

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Nifty Pharma Bucks a Deep Red Market as Select Drugmakers Get Relief From Today's US Tariff Deadline

Quick Answer

The Nifty Pharma index was up 0.41 percent on 29 September 2026, the best-performing sectoral index even as the broader market traded deep in the red on rising crude oil prices and US bond yields. Twelve of its 20 constituents were trading higher, led by Abbott India up 2 percent, Mankind Pharma up 2.5 percent, Dr Reddy's Laboratories up 1.8 percent, Gland Pharma up 1.4 percent and IPCA Labs up 1 percent. The relative strength coincides with new Section 232 tariffs on pharmaceutical imports into the US taking effect today, with an accelerated implementation date carved out for companies that have signed tariff agreements. Dr Reddy's is technically the most stretched of the gainers, with an RSI of 75.3, above the conventional overbought threshold.

While most of the Indian market traded lower on Tuesday amid rising crude oil prices and elevated US bond yields, the Nifty Pharma index stood out as the best-performing sectoral gauge, up 0.41 percent. Twelve of its 20 constituents were trading in the green, led by Abbott India, Mankind Pharma, Dr Reddy's Laboratories, Gland Pharma and IPCA Labs.

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The relative resilience comes as new US Section 232 tariffs on pharmaceutical imports take effect today, with some clarity emerging on which companies face immediate impact and which have secured more time. This article covers the tariff backdrop, the day's top gainers, and the levels and risks for pharma investors.

Table of Contents

Why Pharma Is Outperforming Today

Item	Detail
Nifty Pharma performance	Up 0.41%, best-performing sectoral index
Constituents in the green	12 of 20
New US tariff	Section 232 pharmaceutical tariffs effective 29 September 2026
Exemption carve-out	Accelerated implementation for companies that signed tariff agreements (Annex III)

Broad Section 232 tariffs on pharmaceutical imports into the US take effect today, the news driving Nifty Pharma's outperformance, but companies that have already signed company-specific tariff agreements were given an earlier, accelerated implementation date, which effectively means less uncertainty for them going forward compared with companies still facing the new rules for the first time today. That distinction, and the fact that most Indian pharma exports to the US are low-cost generics that have so far been treated separately from tariffs aimed at branded and patented drugs, appears to be behind today's relative calm in the sector.

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Today's Top Gainers in Nifty Pharma

Company	Change
Abbott India	+2%
Mankind Pharma	+2.5%
Dr Reddy's Laboratories	+1.8%
Gland Pharma	+1.4%
IPCA Labs	+1%

Within Nifty Pharma, the gains are broad-based across large-cap and mid-cap names rather than concentrated in one segment, which suggests the market is treating today's tariff clarity as a sector-wide, not company-specific, relief. India exported more than $10.5 billion of pharmaceutical products to the US in FY25, of which about 88 percent were generic formulations, which have historically been treated more favourably than branded and patented drugs under prior tariff actions.

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Dr Reddy's Laboratories: Live Levels

Metric	Value (29 Sep, 11:03 AM)
Dr Reddy's share price	Rs 1,242.00 (up 1.64%)
Previous close	Rs 1,221.00
Day range	Rs 1,229.00 to Rs 1,247.70
52-week high / low	Rs 1,414.90 / Rs 1,101.00
RSI (14-day)	75.3
SuperTrend	Bullish, support Rs 1,163.65
20-day average	Rs 1,175.61
P/E vs industry P/E	32.05 vs 38.42

Dr Reddy's RSI of 75.3 is above the conventional overbought threshold of 70, showing the Nifty Pharma gainer has run up quickly on today's tariff-driven relief. It trades at a discount to the pharma industry's average P/E of 38.42, and its SuperTrend indicator remains bullish with support well below the current price.

Risks for the Nifty Pharma Rally

Today's relief behind the Nifty Pharma move is specific and conditional, tied to companies that have signed agreements or fall outside the accelerated implementation group, not a blanket exemption for the whole sector. Any expansion of tariff scope to cover more products or companies in future rounds, as has happened repeatedly with pharma tariff announcements over the past year, would quickly reverse today's sentiment.

Overbought conditions in some names, such as Dr Reddy's RSI above 75, raise the risk of near-term profit-taking even if the underlying tariff news stays favourable. Currency and demand-side risks in the US market, along with the possibility that future policy rounds could target the large base of Indian generic exports directly, remain the bigger multi-year risks facing the sector.

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Conclusion

Nifty Pharma outperformed a deep red market, rising 0.41 percent as 12 of its 20 constituents gained on relief tied to today's Section 232 US tariff implementation, with Abbott India, Mankind Pharma and Dr Reddy's leading the move. The relief is conditional and not a blanket exemption, and some names like Dr Reddy's are technically overbought after the rally. Investors in pharma stocks should watch for further US tariff clarity, follow stop-loss levels and consult a SEBI-registered adviser.

Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data independently before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).

Frequently Asked Questions

Why is Nifty Pharma rising while the rest of the market falls?

Ans. Nifty Pharma is up 0.41 percent as investors react positively to some clarity around new US Section 232 pharmaceutical tariffs taking effect today, even as crude oil and bond yield pressures weigh on the broader market.

What US tariff is affecting pharma stocks today?

Ans. New Section 232 tariffs on pharmaceutical imports into the US take effect on 29 September 2026, with an accelerated implementation date already applied earlier to companies that signed tariff agreements.

Which Nifty Pharma stocks are the top gainers today?

Ans. Mankind Pharma is up about 2.5 percent, Abbott India up 2 percent, Dr Reddy's Laboratories up 1.8 percent, Gland Pharma up 1.4 percent and IPCA Labs up 1 percent.

Are Indian generic drug exports exempt from the new US tariffs?

Ans. Indian pharma exports to the US are about 88 percent generic formulations, which have historically faced different treatment from tariffs aimed at branded and patented drugs, though this is not a fixed, permanent exemption.

What is the Dr Reddy's share price today?

Ans. Dr Reddy's Laboratories was trading at Rs 1,242, up 1.64 percent, with an RSI of 75.3, which is in overbought territory.

What are the risks to today's Nifty Pharma rally?

Ans. The tariff relief is conditional, not a blanket exemption, and any future expansion of tariff scope to more products could reverse sentiment. Some stocks are also technically overbought after the move.

How many Nifty Pharma stocks are in the green today?

Ans. 12 of the 20 Nifty Pharma constituents are trading higher, showing the strength is broad-based across the sector rather than limited to one company.

Should I buy pharma stocks after today's rally?

Ans. The relief is real but conditional, and some names are overbought. Check valuations individually, use a stop-loss and consult a SEBI-registered adviser.