Wockhardt, Sun Pharma, Lupin Lead Pharma Stock Rebound as Tariff Fears Ease

The stock market today witnessed a sharp recovery in pharmaceutical counters after last week’s sell-off triggered by U.S. tariff concerns. A key clarification around the proposed 100% import duty brought fresh relief to the sector, helping beaten-down stocks stage a comeback.

Market Performance

After facing heavy pressure in the previous session, several pharma names bounced back with strong gains:

• Wockhardt surged over 10%, emerging as the top mover in the space
• Sun Pharma, Lupin, Alembic Pharma and others gained between 1–3%
• The Nifty Pharma index advanced over 1%, halting its recent slide

The recovery was broad-based, with most frontline and mid-cap pharma stocks participating in the rebound.

What Triggered the Comeback?

The initial panic was sparked when the U.S. announced a 100% tariff on imported branded and patented pharmaceutical products effective October 1, unless manufacturing was shifted to domestic facilities.

However, sentiment turned positive after clarity emerged that the tariff would not apply to generic medicines, which form the major share of India’s pharmaceutical exports to the U.S.

Why the Impact Is Seen as Limited

Most Indian pharmaceutical companies derive a significant portion of their U.S. business from the generic drug segment, which remains unaffected by the tariff decision.

Key sector dynamics:

• India exports approximately $8.7 billion worth of pharmaceuticals to the U.S.
• Generics account for nearly 90% of drug volumes in the U.S. market
• Majority of Indian pharma revenues from the U.S. are driven by low-cost generic formulations, not branded or patented products

With the tariff scope confined only to premium segments, market participants viewed the earlier correction as excessive, triggering swift buying interest.

Summary

The quick reversal in pharma stocks highlights how sensitive the market remains to global policy headlines. For now, clarity that generic drugs remain outside the tariff net has restored confidence, driving strong intraday gains in stocks like Wockhardt, Sun Pharma, Lupin and Alembic Pharma.

The sector will likely stay in focus as global trade developments continue to unfold.