Pharma Stocks Crack: Nifty Pharma Dips 2% After Trump’s 100% Drug Tariff Shock

Welcome Back Investor!

Despite Trump’s tariff moves and an H-1B visa fee hike sparking global jitters, experts are betting big on Indian PSU stocks like SBI, PNB, BPCL, and BEL. The logic? Strong government backing and domestic demand make them resilient even when global winds turn rough. For investors eyeing stability with growth, PSUs could be the safe harbor in turbulent seas.

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▪️ Impact News

▪️ Markets

▪️ Everything else you need to know today

▪️ Special

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IMPACT NEWS

Pharma Stocks Crash: Nifty Pharma Down 2% on Trump’s 100% Drug Tariff

Indian pharma stocks took a beating this week after former U.S. President Donald Trump announced a 100% tariff on branded drug imports - a move that rattled global markets. The Nifty Pharma Index tumbled over 2%, with big names like Sun Pharma, Lupin, and Divi’s Labs leading the slide. Mid-cap players faced even sharper pain, with several counters falling over 4%.

So why the sudden sell-off? Investors fear that steep tariffs could disrupt export margins for Indian drugmakers that rely heavily on the U.S. market. At the same time, uncertainty around trade policies has created an air of caution, pushing traders to book profits in pharma counters.

But here’s the silver lining - India continues to dominate the generic drug segment, supplying around 40% of generics to the U.S. Analysts believe this strength shields Indian pharma from the full brunt of tariffs, which primarily target branded imports.

For long-term investors, the key is to separate noise from fundamentals. If tariffs escalate, margins could tighten, but India’s cost-competitive advantage in generics remains intact.

MARKETS

Dalal Street ended deep in the red today as Sensex slipped 733 points and Nifty dropped 236 points, with midcaps crashing over 2%. Pharma stocks led the fall after Trump’s 100% drug tariff announcement, while IT counters weakened on Accenture’s muted growth outlook. Heavy foreign selling added fuel to the slide, making mid and smallcaps the hardest hit in this risk-off wave.
_{Closing figures as on 26.09.25 (3.30pm IST)}

🔎 In Focus

Stock Performance:

Top Gainers

✅ L&T (+2.34%): Shares jumped after news that Telangana will acquire L&T’s stake in Hyderabad Metro, unlocking cash and easing debt concerns.

✅ Nuvama Wealth (+1.37%): Stock inched higher on a fresh brokerage Buy call with a target of ₹7,500, supported by steady momentum.

✅ Tata Motors (+1.29%): Rose as JLR began phased operations after its cyberattack-led halt, calming investor worries on revenue impact.

✅ ITC (+1.25%): Gained as a defensive play; FMCG demand outlook kept buyers interested even in a weak market.

Top Losers

🔻 Vodafone Idea (-7.60%): Slumped after the Supreme Court deferred the AGR dues hearing to Oct 6, prolonging uncertainty.

🔻 Laurus Labs (-7.15%): Fell sharply as Trump’s 100% tariff on branded drug imports spooked pharma investors across the board.

🔻 HFCL (-5.63%): Declined on profit-taking and risk-off sentiment in smallcaps; no major company-specific trigger today.

🔻 PNB Housing Fin (-4.81%): Dropped despite raising ₹300 crore via NCDs; financial stocks broadly weakened amid market selloff..

INDIA FRONTIER

Everything else you need to know today

💱 Shift: The BRICS-backed New Development Bank will launch its first rupee-denominated bond by March 2026. This step supports India’s push to make the rupee more global and reduce reliance on the U.S. dollar. It’s a major move that could change how emerging markets raise money.

⚖️ Victory: The Supreme Court has cleared JSW Group’s $2.2 billion purchase of Bhushan Power & Steel. This decision ends years of legal delays and gives JSW a stronger position in the steel industry. The ruling also signals faster resolutions for future corporate takeovers in India.

🍽️ Crash: Carysil’s stock dropped almost 10% after Trump imposed 50% tariffs on imported kitchen equipment. The higher costs could squeeze company profits and impact exports. Investors now worry whether more tariff hikes will hit other consumer goods.

🛡️ Threat: India’s cybersecurity agency CERT-In has warned about “Shai-Hulud,” a new malware targeting startups and IT firms. Spread through phishing attacks, it can steal sensitive company data. For young tech companies, this is a wake-up call to strengthen cyber defenses.

SPECIAL

Small & Midcap Stocks Crash: BSE Smallcap Sinks 1,000 Points

Indian markets witnessed a sharp jolt as small and midcap stocks tumbled, wiping out significant investor wealth in just one session. The BSE Smallcap index sank over 1,000 points, while the Midcap index fell nearly 2%, sparking concerns of an extended correction. The rout was led by pharma and consumer-facing counters, hit hard by Trump’s newly announced 100% drug tariff and other tariff-related fears.

Major names like Policybazaar, Biocon, and Laurus Labs faced heavy selling pressure, with smaller stocks such as Wockhardt and Hubtown nosediving over 8–10%. Analysts point to stretched valuations in the small and midcap segment, where stocks had been rallying for months, as one of the key reasons behind the steep fall. When global uncertainty combines with overheated prices, even a small trigger can set off panic selling.

While today’s crash shook retail investors, experts suggest this could be a much-needed reality check. Small and midcaps remain attractive for long-term growth, but selective investing and caution are now critical.

THE HANOOMAAN INSTITUTE

5 Steps Middle-Class People Can Take to Climb the Wealth Ladder

For most middle-class families, the dream of financial freedom feels distant. But wealth isn’t built overnight - it’s the result of disciplined, intentional choices. The journey begins with small, consistent steps that compound into long-term financial security.

Step 1: Master Your Spending.
Wealth starts by living below your means. Track expenses, cut unnecessary costs, and redirect savings toward investments. Every dollar not spent is a dollar that can grow.

Step 2: Build an Emergency Fund.
Before chasing returns, secure your foundation. An emergency fund prevents financial shocks from derailing your progress and gives you the confidence to invest consistently.

Step 3: Eliminate High-Interest Debt.
Debt is a wealth killer. Paying off credit cards and personal loans frees up cash flow and accelerates your climb up the financial ladder.

Step 4: Invest for Growth.
Don’t just save - invest. Equities, mutual funds, or retirement accounts build wealth over time through compounding. Starting early magnifies results.

Step 5: Create Additional Income Streams.
Side hustles, freelancing, or small businesses provide extra fuel for wealth creation. More income means more freedom to save and invest.

Climbing the wealth ladder isn’t about luck - it’s about discipline, patience, and smart financial habits. Start with one step today, and watch momentum carry you upward.

SUPERCHARGE YOUR INVESTING SKILLS

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Thanks for reading.

Until Sunday with our Startup Special!

Hanoomaan India Business team

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