Pharma index surged over 4 per cent in early trade on Thursday after US President Donald Trump’s administration exempted pharmaceutical products from reciprocal tariffs. Market and industry experts see this as positive sign for Indian pharma companies.

Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments, highlighted that the segment is likely to witness buying due to exemption. Citi also cited that it is unclear whether the exemption is a short-term or medium-term arrangement.

Brokerages CLSA and Citi pointed out that Aurobindo Pharma (48 per cent), Zydus (47 per cent), and Dr Reddy’s (46 per cent) have higher revenue mix from the US.

Only Nifty Pharma and healthcare traded in the positive territory among all sectoral indices.

As at 10.06 am, Nifty pharma was up 3.18 per cent at 21,619.85 and Nifty midsmall healthcare index rose 1.93 per cent to 41,045.35.

Sun Pharmaceuticals led the gainers of Nifty 50 components at the time of writing, with 4.29 per cent increase to ₹1,787.15. The stock soared 6 per cent from the previous close to hit a high of ₹1,812.70.

Cipla shares traded 2.44 per cent positive on the NSE at ₹1,487.85, after hitting a high of ₹1,523.30.

Dr Reddy’s Laboratories stock jumped 7 per cent before trading 1.85 per cent positive at ₹1,171.25 as at 10.11 am.

All pharma stocks continued to trade in positive territory, with Gland Pharma (+4.84 per cent), Lupin (+4.47 per cent), Ipca Laboratories (+4.44 per cent), Aurobindo Pharma (+4.15 per cent) and Divi’s Laboratories (+2.96 per cent) also driving the rally.