Equity Alert
Nomura sees 5% hit to Sun Pharma FY28 earning on US drug tariff
This story was originally published at 13:48 IST on 6 April 2026
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Equity Alert: Nomura sees 5% hit to Sun Pharma FY28 earnings on US drug tariff
MUMBAI--1315 IST--Sun Pharmaceutical Industries will face only around 15% US tariffs on most of its specialty products manufactured and imported from countries with which the US has a trade deal, brokerage Nomura said in a research report. However, the US' decision to impose 100? valorem tariffs on patented pharmaceutical products is an incremental negative for the company as the tariff incidence on its products may be higher than that of its competitors, the brokerage added. If the company decides to raise prices to offset impact of tariffs, its market share gains will be affected, while if it absorbs a 15% tariff on its products, its 2027-28 (Apr-Mar) earnings may be hit by around 5%, the brokerage said. At 1333 IST, shares of Sun Pharma traded slightly lower at INR 1688.60 on the NSE.
The new tariffs on patented drugs were imposed after the Section 232 investigation by the US Department of Commerce came to an end. This rule provides significant exemptions or lower tariffs for products manufactured in and imported from countries with which the US has entered into a trade agreement for lower pharmaceutical tariffs. Imports from the European Union, Switzerland, and South Korea will attract a 15% tariff and for the UK, the tariff could be as low as 0-10%, according to Nomura. There are 17 Big Pharma companies that have entered into an agreement with the US. The tariffs for these companies are at 0% or 20%, depending on the contours of the deal.
Nuvama estimated that the proposed US tariffs could potentially impact more than $1 billion of Sun Pharma's specialty product sales. Most of Sun Pharma's products are manufactured outside the US--in Europe and South Korea. Nuvama, therefore, expects a tariff incidence of 15% in most cases. Among other domestic players, Sun Pharma has the largest exposure to patented products in the US. Most of Sun Pharma's specialty products are manufactured outside the US, and these are at a disadvantage relative to competing products which are either manufactured in the US or marketed by companies that have already secured deals with the US government.
Nuvama expects for Sun Pharma to build up its inventory in the US before Sept. 29, when the tariffs take effect. The company may also switch some manufacturing to alternative sites in the US over time. Site transfer for biologic products Ilumya and Unloxcyt is challenging and the transfer of intellectual property to US entities is another option that could reduce transfer pricing into the US, thereby lowering total tariffs, Nuvama said.
There are no tariffs on generic drugs and biosimilars, which constitute the bulk of sales by domestic companies in the US. While the tariff rule retains the option to impose tariffs on certain generics in due course, Nomura does not expect a material policy shift on generics. The brokerage also expects no material impact on contract development and manufacturing organisations in the near term. However, most of these companies in India make key intermediates and active pharmaceutical ingredients, which are also susceptible to new tariff rules for branded patented drugs. The active pharmaceutical ingredient may not be directly shipped to the US, but may enter the US after being processed and formulated in other countries. If India is considered a country of origin for such products, 100% tariffs could apply in the absence of a trade deal. (Eshitva Prakash)
Equity Alert: Dabur down despite in-line Q4 estimates; brokerages positive
MUMBAI--1240 IST--Shares of Dabur India declined after opening higher Monday despite the company announcing largely healthy growth expectations for the March quarter. Its consolidated revenue for the quarter is expected to grow in mid-single digits on a year-on-year basis, while its operating profit is likely to grow comparatively faster, the company said in a quarterly business update.
The revenue estimate by the company was in line with Nuvama's expectation of a 4.8% on-year growth, the brokerage said in a report. The brokerage expects Dabur's international business to grow 1–2% on year in rupee terms, as the company suffered some impact due to disruptions caused by the West Asia hostilities. Nuvama maintained a 'buy' recommendation on the stock with a target price of INR 605. Nuvama expects Dabur's earnings before interest, taxes, depreciation, and amortisation to rise 5.6% on year in the quarter ended March.
Dabur is among the companies to be least hit due to rising raw materials prices, brokerage Nomura said in a report, though minimal impact is likely because of high prices of liquid paraffin. Stable sugar and amla prices are likely to support the company's margin in the March quarter, the brokerage said. Nomura estimated Dabur's raw material prices inching up 4% on year during Jan-Mar.
Dabur sees its healthcare portfolio posting low-single-digit growth on year in the March quarter. This is, however, weaker than Nomura's estimate of mid-single-digit growth, the brokerage said in a seperate report. Dabur saw its home and personal care category growing in the mid-teens during Jan-Mar, and this was higher than Nomura's expectation of around 10% on year.
Further, the appointment of Chief Executive Officer Herjit Bhalla, effective Apr. 15, is expected to play out positively for Dabur in the coming quarters, Nomura said. Nomura maintains its 'buy' stance on the stock with a target price of INR 600. Nomura and Nuvama's targets imply around 47% upside for the stock from its current target price. At 1239 IST, shares of Dabur were trading nearly 2% lower at INR 409.45 on the National Stock Exchange. (Ruchira Kagita)
Equity Alert: Indices pare losses; gains in fincl svcs cos lead recovery
MUMBAI--1155 IST--Benchmark indices recovered from intraday losses and made slight gains during the trade. Shares of select banks and consumer-facing companies were among the top gainers in the Nifty 50 along with shares of major information technology players. On other hand, shares of energy and major pharmaceutical companies, and several automobile makers were a drag on the index.
At 1306 IST, the Nifty 50 was at 22780.50, up 0.3%, and the BSE Sensex was at 73483.65, up 0.2%. The Nifty 50 index found support after falling to intraday low of 22542.95 points.
Shares of retail major Trent was the top-performing stock after the company's provisional figures showed the top line in the March quarter grewing just over 20% on year--highest quarterly growth for 2025-26 (Apr-Mar). The company had posted revenue growth between 16% and 20% in the other three quarters of FY26.
Titan Co. was also among the highest gainers in the index and was up nearly 4%. Shares of the company rose along with those of other jewellery companies after Senco Gold gave positive commentary about demand from weddings during the March quarter. Shares of Kalyan Jewellers were up more than 5%.
Shares of Axis Bank extended intraday gains, climbing nearly 2% higher. The bank's gross advances were up more than 18% on year, while its total deposits rose nearly 14%. Among other banks, index heavyweight HDFC Bank was up nearly 1%. The bank said its gross advances as of Mar. 31 were up 12% on year and its deposits were up 14.4% on year.
However, other heavyweights such as ICICI Bank and Reliance Industries traded in the red, with the latter being down nearly 4%. Financial services companies such as Shriram Finance, SBI Life Insurance Co., and HDFC Life Insurance Co. were up around 1-2%.
Stocks of state-owned energy manufacturers, Power Grid Corp. of India, and NTPC were down around 0.4?ch. Shares of Oil and Natural Gas Corp. were down nearly 2% as Brent crude oil futures remained high at around $109 per barrel. (Shruti Nair)
Equity Alert: Jewellery cos rise after Senco Gold's positive commentary
MUMBAI--1205 IST--Shares of jewellery companies rose amid strong commentary from Senco Gold, which announced its quarterly update on Saturday. Shares on Senco Gold rose as much as 13?ter the company said its revenue during the March quarter is expected to rise 46% on year led by a strong wedding demand. Shares of other jewellery companies also rose with Thangamayil Jewellery up nearly 8%, Kalyan Jewellers up 5%, and Titan Co. up nearly 3%.
Senco Gold Saturday said strong demand from weddings thoughout the quarter and demand for lightweight jewellery during Valentine's Day and International Women's Day led to a strong revenue growth. The company said customers continued to buy jewellery despite volatilie gold prices due to the US-Iran war. "Senco Gold's Q4 performance give us an indication of likely strong performance of other branded jewellery players (including Titan)," ICICI Securities said in a note.
Senco is planning to launch 20-25 stores in 2026-27 (Apr-Mar). This is less than 26 stores added in FY26 but more than 16 stores added in FY25. Senco aims to achieve 20-25% of sales growth and maintain EBITDA margin of 7.5-7.8%. The company's revenue growth was 21% in FY26.
Shares of Senco Gold hit its highest level in over month at INR 326.80 per share. Nearly 14 million shares of Senco Gold have changed hands so far, more than seven times the daily average volume of nearly 2 million over the last three months. At 1149 IST, shares of Senco Gold were up nearly 11%. (Anshul Choudhary)
Equity Alert: Trent rises 7%; co sees Q4 sales up 20.2% YoY, highest in FY26
MUMBAI--1055 IST--Shares of Trent rose nearly 7% to a one-month high of INR 3,791.90 after the company said it sees its highest quarterly top-line growth in 2025-26 (Apr-Mar) in the March quarter at 20.2% on year. The company had posted revenue growth between 16% and 20% in all other quarters of FY26.
However, brokerage Citi Research remains cautious on Trent's performance in terms of growth per square foot and its growth prospects amid heavy competition. The scope of expansion in tier-II and tier-III towns will also impact the growth of the company, the brokerage said in a research report. However, an increase in discretionary spending and accelerated store additions for Westside and Zudio may help the company, Citi said. Citi maintains a ‘sell' call on Trent with a target price of INR 3,800.
Meanwhile, Elara Securities (India) estimated Trent's sales to grow 18% on year in the March quarter with the like-for-like sales growth in low single digit. The company's earnings before interest, taxes, depreciation, and amoritisation margin are seen going up by 123 basis points on year to 17.2%, according to Elara Securities. The brokerage has an 'accumulate' stance on Trent with a target price of INR 4,800. At 1117 IST, shares of Trent traded 5.5% higher at INR 3,747.40 on the National Stock Exchange. (Ruchira Kagita)
Equity Alert: Mkt choppy after opening higher; oil up on Trump's new threat
MUMBAI--1007 IST--Benchmark equity indices turned choppy after opening slightly higher as oil prices rose after US President Donald Trump stepped up his threats against Iran, intensifying concern over supply disruptions. Major equity indices in the Asia-Pacific region remained mixed in the early trade after Trump on Sunday issued a fresh round of threats to attack Iran's power plants and civilian infrastructure, if Tehran failed to fully reopen the Strait of Hormuz by Tuesday.
At 1003 IST, the Nifty 50 index traded at 22586.45, down 126.65 points or 0.6%. The BSE Sensex traded at 72871.95, down 447.60 points or 0.6%. "With uncertainty over the West Asia conflict looming large, the market will continue to be volatile responding to potential good and bad news. The potential for further escalation of the war is high in the next few days," V.K. Vijayakumar, chief investment strategist at Geojit Investments, said in a note.
The June futures contract of Brent Crude Oil on the Intercontinental Exchange rose nearly 3% to $111.89 per barrel in early trade Monday after Trump's fresh threats on Iran. At 1005 IST, the contract came slightly off highs but traded around the $110 per barrel mark. Sunday, eight member countries of the Organisation of the Petroleum Exporting Countries and its allies agreed to a modest production rise of 206,000 barrels per day in May. However, that decision will largely exist on paper as several of the group's key producers are unable to raise output due to the war, Reuters reported.
In the broader market, all mid- and small-cap indices traded 0.2-0.8% lower in a choppy trade. The India Volatility Index, the fear gauge of Dalal Street, traded nearly 4% higher, indicating increased nervousness in the market. Barring Nifty PSU Bank, Nifty IT, Nifty Metal, and Nifty Auto, all sectoral indices traded lower at 0953 IST.
Among individual stocks, Trent rose nearly 6% to INR 3,759, its highest price in a month after the company announced its March quarter business updates. The Tata-group company's standalone revenue from operations for the quarter rose 20% on year to INR 49.37 billion. For 2025–26 (Apr-Mar), the company's revenue rose 18% on year to INR 197.01 billion, it said in an exchange filing. On other hand, shares of Reliance Industries fell over 2% and were the worst hit in the 50-stock index. (Arya S. Biju)
Equity Alert: Most markets in Asia closed; indices in Japan, S Korea higher
MUMBAI--0836 IST--Indices in Japan and South Korea opened higher Monday even though US President Donald Trump threatened to intensify attacks on Iran from Tuesday if the West Asian nation doesn't reopen the Strait of Hormuz. Iran will "be living in Hell" if it doesn't open the Strait, Trump said on his social media platform. While stock markets in Australia, New Zealand, and Hong Kong are closed Monday for Easter, those in China and Hong Kong are closed on account of the Qingming Festival.
The South Korean benchmark Kospi gained nearly 2% during early trade. Index heavyweights Samsung Electronics and SK Hynix rose 4% and 2%, respectively. Meanwhile, the rise in Nikkei 225 and Topix was driven by gains in chips and electronics stocks, according to the DowJones Newswires.
Most countries in Asia are net importers of crude oil, and high prices of the commodity will continue to adversely impact these economies. On Monday, Brent crude oil futures were around $110 per barrel, up nearly 1%. Amid constrained crude oil movement, Australia received assurance of continued fuel supply. Matt Thistlethwaite, assistant Australian minister of immigration, said in an interview that Japan and South Korea provided assurances of "normal supply", according to The Guardian.
Following were the levels of major Asian indices at 0824 IST:
|
Index |
Level |
Change in % |
| Nikkei 225 Day | 54001.64 | 1.65 |
| TOPIX FIRST SECTION | 3678.56 | 0.92 |
| KOSPI | 5495.4 | 2.2 |
| FTSE Singapore Strait Times | 4966.32 | 0.38 |
(Ruchira Kagita)
Equity Alert: Indices may open tad dn; oil up on Trump's new threat to Iran
MUMBAI--0810 IST--Benchmark indices are expected to open slightly lower as oil prices rose after US President Donald Trump stepped up his threats against Iran, intensifying concern over disruption in supply. Trump on Sunday issued a fresh round of threats to attack Iran's power plants and civilian infrastructure, if Tehran failed to fully reopen the Strait of Hormuz by Tuesday.
Trump's Tuesday deadline comes as Iran approaches its earlier 10-day deadline to make a deal and open the Strait of Hormuz--which was slated to end on Monday. Trump has been going back and forth between saying a peace deal was on its way to raising more threats on Iran, and with shifting deadlines. In an interview with Fox News, Trump said that he thinks he could reach a deal with Iran by Monday. But if there's no agreement, Trump said he was "considering blowing everything up" and seizing Iran's oil.
Iran has pushed back against Trump's ultimatum to reopen the Strait of Hormuz, saying that the critical waterway would only reopen fully after damage from the war is compensated, according to media reports. Iran said it will respond "in kind" to any attacks on its infrastructure, with senior officials condemning the US president's remarks as "incitement to war crimes", according to an Al Jazeera report. Meanwhile, Iranian attacks across the Gulf region continued, with power, water desalination and oil plants hit in Kuwait and an oil facility targeted in Bahrain.
The Gift Nifty indicates a slightly gap-down opening for the domestic markets, said Vipin Kumaar, senior technical and derivatives analyst at Globe Capital Market. The current short-term chart structure indicates a pause around current levels with immediate support at 22000-21700 spot levels. On the flip side, 22900-23200 points will act as an immediate hurdle for the Nifty 50 index, Kumaar said.
Shares of HDFC Bank, YES Bank, IDBI Bank, Kotak Mahindra Bank, Union Bank of India and RBL Bank will remain in focus Monday after they announced their March quarter business updates over the weekend. Shares of information technology major, Wipro will also be on focus after the company secured a long-term transformation deal with Singapore-based Olam Group. The eight-year engagement is expected to cross $1 billion in total contract value, with a committed spend of $800 million. (Arya S. Biju)
Equity Alert: Indices end wk with gains; Nasdaq, S&P 500 snap 5-wk losses
MUMBAI--0733 IST--Major US indices ended the truncated-trading week higher. The technology-heavy Nasdaq Composite outperformed its peers on a weekly basis to gain 4.4%, while the S&P 500 and Dow Jones rose around 3%. The Nasdaq and the S&P 500 snapped their five-week losing streak. On Thursday, the Dow was the only index to end lower.
The market witnessed positive momentum after the US President Donald Trump said that the war in Iran was nearing its end and that the US may leave the West Asian country in two-three weeks. However, sentiment on Wall Street later weakened after Trump said attacks on Iran may intensify during these weeks. Over the weekend, fear gripped the market again after Trump threatened Iran to open up the Strait of Hormuz once again. Iran will "be living in hell," Trump said on his social media platform, Truth Social. The e-mini Dow futures fell by over 0.2%, and Brent Crude oil futures rose to $110 per barrel again, up nearly 2%.
Meanwhile, on the macroeconomic front, the US added 178,000 jobs in March, more than what The Wall Street Journal and Reuters had estimated. The unemployment rate in the country was recorded at 4.3% compared to 4.4% in February. Further, job figures for February and January were revised upwards. Job losses in February were revised to 133,000 from 92,000 earlier. The job figures for January were changed upwards to 160,000 from 126,000.
Following are the closing levels of US indices Thursday:
|
Index |
Level |
Change in % |
|
S&P 500 |
6582.69 | 0.11 |
|
NASDAQ Composite |
21879.182 | 0.18 |
|
Dow Jones Industrial Average |
46504.67 | (-)0.13 |
(Ruchira Kagita)
US$1 = INR 92.95
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
All prices from National Stock Exchange, unless otherwise specified.
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