š 28 June 2026 | EarnFree.in | Sector Analysis
While Nifty Metal collapsed 4.3% and IT fell 4% this week, one sector quietly delivered Indiaās best weekly stock market performance: Nifty Pharma rose 2.8% ā powered by Citi and Nomura upgrades on Cipla and Dr Reddyās, and driven by the structural tailwind of a US-India trade deal reducing pharma tariffs from 50% to 18%. With crude-driven inflation cooling and RBI rate cuts on the horizon, pharmaās defensive-plus-growth profile makes it the standout sector for Q3 2026.
š Nifty Pharma ā Weekly Performance (Week ending June 25)
| Sector | Weekly Return |
|---|---|
| š¢ Nifty Pharma | +2.8% (TOP performer) |
| š¢ Nifty Private Bank | +1.0% |
| š¢ Nifty Auto | +0.9% |
| š¢ Nifty Realty | +0.7% |
| š” Nifty Bank | +0.4% |
| š“ Nifty Oil & Gas | -1.4% |
| š“ Nifty PSU Bank | -1.5% |
| š“ Nifty Consumer Durables | -2.8% |
| š“ Nifty IT | -4.0% |
| š“ Nifty Metal | -4.3% (WORST performer) |
š Why Cipla and Dr Reddyās Are Getting Analyst Love
Citi and Nomura both published positive notes on Cipla and Dr Reddyās this week. The core thesis: Indian pharma companies are the biggest beneficiaries of the US-India trade deal reducing tariffs from 50% to 18%. The US is Indiaās largest pharma export market ā worth $8.7 billion annually. At 18% tariffs vs 50%, Indian generic drug makers get a massive margin expansion. Additionally, the FDA approval pipeline for Ciplaās US generics division is accelerating, with 3 new ANDA approvals expected in Q2 FY27.
šÆ Top Pharma Stocks to Watch ā July 2026
- š Cipla (NSE: CIPLA): Citi upgrade ā US generics recovery, branded India business strong, respiratory franchise growing
- š Dr Reddyās (NSE: DRREDDY): Nomura positive ā biosimilars pipeline the key catalyst, Russia business stabilising
- š Sun Pharma: Largest Indian pharma ā dermatology specialty portfolio + US specialty growing
- š Diviās Laboratories: API manufacturer ā crude ā = input cost relief + US-India tariff normalisation
- š Aurobindo Pharma: Deep US generics exposure ā most leveraged to tariff reduction
ā ļø Disclaimer: This article is for informational and educational purposes only. It is not SEBI-registered investment advice. Stock prices are subject to market risk. Please consult a certified financial advisor before investing.
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