U.S. pharma tariffs spare India's generic drugmakers — but leave investors jittery

Core Viewpoint - Leading Indian drugmakers' stocks declined despite the U.S. imposing 100% tariffs on branded and patented drug imports, which are not expected to significantly impact these companies due to their focus on exporting generic drugs to the U.S. [1] Group 1: Market Reaction - Shares of major Indian pharmaceutical companies, including Sun Pharmaceutical and Divi's Laboratories, fell by 2.5% and 3.5% respectively, with the Nifty Pharma Index also declining by over 2% [2] - Investor concerns may be influenced by recent events in the global market, as noted by Ayush Abhijeet from White Oak Capital Partners [2] Group 2: Economic Context - There has been an increase in challenges facing the Indian economy, including higher U.S. tariffs of 25% and additional tariffs, along with an increase in H-1B visa fees [3] - Although these tariffs are not expected to significantly harm the Indian economy or corporate earnings, there are fears of further escalations in U.S.-India trade relations [3]