NIFTY Pharma surges over 3% on India-US trade deal boost; Cipla, Sun Pharma, Dr Reddy's, others gain

The NIFTY Pharma index on Tuesday, February 3, 2026, rallied 3.26% as all components were trading in the green territory after India and the United States signed a trade deal.

The surge was led by a rally in Aurobindo Pharma shares, which rose 5.68% to ₹1,237.50 per share on the National Stock Exchange (NSE) at 9:42 am.

Under the deal, Indian goods would face a reduced reciprocal tariff of 18% from 25% earlier. The breakthrough follows a high-level phone conversation between Prime Minister Narendra Modi and United States President Donald Trump.

In a reciprocal move, New Delhi has committed to reduce trade barriers for American goods and increase imports across sectors, including agriculture, energy and technology.

After the announcement of the trade deal, PM Modi said he was delighted that "Made in India products will now have a reduced tariff of 18%".

"Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," the Prime Minister said on X.

He said that when two large economies and the world's largest democracies work together, it "benefits the people and unlocks immense opportunities for mutually beneficial cooperation".

President Trump, taking to Truth Social platform, said India will move forward to cut "tariffs and non tariff barriers" against the US to zero, adding India would buy American goods worth more than USD 500 billion.

"Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a trade deal between the United States and India, whereby the United States will charge a reduced reciprocal tariff, lowering it from 25% to 18%," the US president said on social media.

India will "likewise move forward to reduce their tariffs and non tariff barriers against the United States, to zero", he said.