India-US Trade Deal Fuels Pharma Stocks: Cipla, Aurobindo, Dr Reddy’s, Mankind, Zydus, More

India-US Trade Deal Impact: Cipla, Aurobindo Pharma, Dr Reddy's, Mankind, Zydus, Divis Labs, Laurus Labs, and other pharmaceutical sector stocks rallied during Tuesday's intraday trading session as part of a wider rally in the stock market today post India-US trade deal.

Nifty Pharma index was up around 2.89% with Aurobindo Pharma, PPL Pharma, Divis Labs, Laurus Labs, etc surging more than 2%. Cipla shares were trading 1.75% higher, Lupin shares were up around 2.18%, Glenmark Pharma stock was trading 2.27% higher.

Indian Stock Market Today

The Indian stock market opened on a strong note on Tuesday, January 3, as investors cheered the recently concluded India-US trade deal. Nifty 50 opened above 26,000 points, whereas BSE Sensex jumped around 23,600 points during the opening session.

Nifty 50 was trading 677 points higher at 25,765 points, whereas BSE Sensex was trading 2272 points higher at 83,896 points. Here are the key reasons behind stock market rally.

India-US Trade Deal

United States President Donald Trump on Monday announced a reduction in the "reciprocal tariff" on Indian goods, lowering it to 18% from the earlier 25%. The India-US trade deal was finalised after Prime Minister Narendra Modi "agreed to stop buying Russian oil," wrote Trump in a post on Truth Social.

The US has finalised a trade deal with India and will reduce reciprocal tariffs on Indian goods to 18%.

"Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%," read Donald Trump's post.

As part of the deal, India is also supposed to reduce their tariffs and non tariffs barriers against the United States, added Trump in his post, while highlighting that India also committed to "Buy American" at a much higher level.

Trump stated that New Delhi will purchase over $500 billion worth of US exports under the understanding. The list includes US energy, technology, agricultural products, coal and other goods.

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