Mankind, Dr Reddy, Gland Pharma, others lift Nifty Pharma up over 1% as US exempts certain drugs from 100% tariffs

Mankind Pharma, Dr Reddy’s, Gland Pharma, Abbott India, among other pharmaceutical stocks gained during the trading session on Tuesday, September 29, in turn powering the sectoral benchmark index Nifty Pharma up over 1% as the United States exempted certain speciality drugs imported from specific 20 countries from its 100% import duty rate.

NSE data showed that the Nifty Pharma surged 1.01% to hit an intraday high of 27,032.40 points on Tuesday’s market, in comparison to 26,761.65 points at the previous equity market close.

After touching the intraday highs, the sectoral benchmark index retracted some of its gains but was trading 0.43% higher at 26,876.95 points as of 10:31 am (IST) during the market session on Sept 29.

While the United States imposed a 100% duty rate on specified patented pharmaceutical products and associated ingredient imports, which took effect for the majority of companies across the world, certain jurisdictions were exempted from the tariff rates.

All eligible Indian drugmakers which will qualify for the speciality medicines import duty exemption will witness significant relief, enjoying zero import duty in the United States, which still remains the primary export market for domestic pharmaceutical companies.

NSE data also showed that Nifty Pharma has been witnessing significant support from the defensive bets of investors, gaining 6.73% in the last three months, outpacing the benchmark NIFTY50 returns of around -5% in the same period.

Market experts predict that rising demand, increased affordability, and innovation opportunities, among other factors, are expected to support the longer-term outlook for the broader industry.

Pharma stocks in focus today

US exempts drugmakers from 100% tariff

In an official filing, the US Department of Commerce highlighted the pharmaceutical products and a list of 20 jurisdictions (countries) that are eligible to receive an ad valorem tariff rate of zero pursuant to Presidential Proclamation 11020 of April 2, 2026.

“These pharmaceutical products include drugs and associated ingredients where all approved indications are designated as orphan; nuclear medicines; plasma-derived therapies; fertility drugs; cell therapy product; gene therapy product; antibody drug conjugates; medical countermeasures related to chemical, biological, radiological, and nuclear threats; and animal health,” as per the official notice.

Drug makers which originate from the listed 20 countries under the US tariff exemption list will enjoy the benefit of exporting to the United States amid a rising demand for these items in the market.

India and 19 other countries, including Argentina, Bangladesh, the European Union, South Korea, Switzerland, Liechtenstein, Taiwan, Thailand, the United Kingdom, Japan and Vietnam, were among the exempted countries.

Investors should also note that the exemption covers defined categories of medicines and their manufacturing inputs, rather than all pharmaceuticals imported from the countries under the Commerce Department list.

This exemption move comes after US President Donald Trump’s directive earlier this year in April to impose a 100% import tariff on certain patented pharmaceutical products and related ingredients from September 29.