India equity benchmarks to open flat; pharma in focus after US tariffs on branded drugs

India’s equity benchmarks are likely to open little changed on Friday, but the sentiment will be one of caution as tariff worries resurfaced after US President Donald Trump announced a 100% levy on branded drugs and 25% on heavy-duty trucks.

Gift Nifty futures were trading at 24,939 points as of 07:46 a.m. IST, indicating that the benchmark Nifty 50 will open near Thursday’s close of 24,890.85.

Trump on Thursday unleashed a fresh round of punishing tariffs on a broad range of imported goods, including branded and patented drugs, and heavy-duty trucks, effective October 1.

The U.S. accounts for slightly more than a third of India’s pharmaceutical exports, which comprise mainly cheaper generic versions of popular drugs. Exports to the country rose 20% to about $10.5 billion in fiscal 2025.

“It needs to be seen whether there will be an exception for critical and chronic drugs,” said Kranthi Bathini, director of equity strategy at WealthMills Securities, adding that the fresh tariffs would affect the pharma stocks in the “short- to medium-term”.

Indian equities have been under pressure due to tariffs, with Trump’s crackdown on H-1B visas - which could raise costs for information technology companies - compounding the sell-off.

Foreign portfolio investors have sold more than $17 billion worth of Indian shares so far in 2025, as per securities depository data, including Thursday’s 49.95 billion rupees ($562.69 million) worth of sales.

The benchmark Nifty 50 and Sensex have fallen more than 2% each in the last five sessions, marking their longest losing run in six months.