It’s a strong Monday across most of Dalal Street, but there are some definite pockets of concern. The Nifty Pharmaceuticals Index has fallen 2.05% to the 20,640.40 level, bucking the overall momentum seen across the market. All other sectoral indices on the NSE are trading in the green, but the Nifty Pharma is trading in the red.
Donald Trump to bring down drug prices
US President Donald Trump, in a social media post, said that he will sign an order to reduce drug prices on Monday, “almost immediately by 30% to 80%.” Further, he added that the US would introduce a policy called “most favoured nation.” Where, the US “will pay the same price as the nation that pays the lowest price anywhere in the world.”
“The US is expected to make a formal announcement on Monday morning, US time. Pharma shares will face some pressure as President Trump is expected to sign an executive order that will reduce US prices of prescription drugs and pharmaceuticals by an expected 30% to 80 % at 9 AM ET on Monday,” explained market expert Ajay Bagga.
“Trump starts his Middle East tour on Tuesday, and we expect the announcement of many energy, nuclear, defence procurement and strategic deals,” added Bagga.
All constituents of Nifty Pharma trade in red
As soon as the markets opened, all the constituents of Nifty Pharma were trading in the red. However, a lot of them recovered. The share price of Sun Pharma was the major loser in the sectoral index. The stock price of Sun Pharma fell 7% to an intra-day low of Rs 1,623.60 on the National Stock Exchange.
It was followed by Aurobindo Pharma, Biocon, Lupin, Glenmark Pharmaceuticals, and many others. The share price of Aruobindo Pharma declined 3.8% to a low of Rs 1,119.90 while that of Biocon fell 3.6% to Rs 317.90. The stock prices of Lupin and Glenmark were down 3% each.
Sun Pharma slides 7% in 5 days
The share price of Sun Pharma has fallen 7.5% in the last five trading sessions. The stock has erased 1.5% in the previous one month and 6.66% in the last six months. However, Sun Pharma’s share price has risen 10% in the last one year.