Pharma stocks slide as US headwinds hurt

Nifty Pharma down 5% this year, as against 6% gains in Nifty 50

- TANMAY TIWARY

Concerns over weakening demand for Indian pharmaceutical (pharma) drugs in the US — their largest export market — have weighed heavily on investor sentiment this year.

While the Nifty 50 has gained 6.02 per cent year-todate (as on September 15), the Nifty Pharma index has declined 5.18 per cent, National Stock Exchange data shows.

Several pharma stocks have taken steep hits: Natco Pharma plunged 38.48 per cent, Ipca Laboratories fell 22.6 per cent, Aurobindo Pharma dropped 17.57 per cent, and Sun Pharmaceutical Industries declined 15.1 percent. Other laggards include Lupin (down 13.18 per cent) and DrReddy’s Laboratories (down 6.3 percent).

Although the long-term outlook for Indian pharma remains positive, analysts expect recovery to be slow and uneven. Until there is clarity around US regulatory hurdles and persistent pricing pressures, experts advise a cautious, selective approach to investing.