Pharma stocks trade mixed post drug tariff amends in Budget 2025

Budget 2025: Pharma stocks experienced a mixed trading session on Saturday following Finance Minister Nirmala Sitharaman's declaration of exemptions from basic customs duty (BCD) for 36 essential medications. Additionally, six life-saving drugs will only incur a reduced duty rate.

“I propose to add 36 lifesaving drugs and medicines to the list of medicines fully exempted from BCD. I also propose to add 6 lifesaving medicines to the list attracting concessional customs duty of 5%. Full exemption and concessional duty will also respectively apply on the bulk drugs for manufacture of the above, ” said Sitharaman.

Additionally, the FM mentioned that the designated medications and drugs included in the Patient Assistance Programmes offered by pharmaceutical companies are entirely free from BCD, as long as the medicines are provided to patients at no charge. She suggested the inclusion of 37 additional medicines along with 13 new patient assistance programmes.

“These measures reflect a strong commitment to improving cancer care infrastructure, reducing treatment costs, and enhancing India’s global healthcare impact. The budget is a positive step towards accessible and affordable healthcare for all,”said Raj Gore, CEO, Healthcare Global Enterprises.

In the Saturday's session, pharma stocks like Sun Pharma, Mankind Pharma, Ajanta Pharma, Divi's Labs, and Biocon showed positive trends, climbing up to 2%. Conversely, some other major players in the sector, including Cipla, Dr Reddy's Labs, Zydus Life, and Lupin, experienced declines, falling by 1-2%.

Dr. Hardik Ajmera, the Medical Director of Saifee Hospital in Mumbai, emphasized the significance of India's growing prominence in the medical tourism sector. He pointed out that with collaborative efforts between the government and the private sector, there is a promising outlook for enhancing this industry. By proposing easier visa norms and improved facilities, we can expect to attract more foreign patients seeking treatment in India. This initiative not only stands to improve healthcare access but also has the potential to significantly benefit the Indian economy.

Technical Views

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Nifty Pharma Index has come off from the morning highs facing resistance around its 200 sma, overall the index is trading in a range 20,800 - 21,800 an immediate range. Some stock specific action can continue with the key indices stuck in a range, Mankind Pharma is holding onto a key support of 2,400 and can extend move towards 2,550 , Biocon as well in last two session have seen significant traction, 400 is the next resistance zone whereas 350 as support.

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