India-EU trade deal: OneSource Specialty, Syngene, Sigachi, other pharma stocks tank up to 19%; here's why

Pharma shares fell in the afternoon session on Tuesday after India and the European Union inked a landmark trade agreement under which the duties of up to 11 per cent on EU pharma products will be nearly eliminated. 

On one hand, the reduction in duties would lead to lower input costs for Indian pharma companies sourcing specialised ingredients from Europe. This will enable affordable access of advanced medicines to Indian consumers. 

FULL COVERAGE:  Union Budget 2026

However, the easier access to input materials for the pharma sector from EU would also lead to a rise in competition for the Indian raw material firms. 
 
The BSE pharma index tanked 318 pts to 40,995 in the afternoon session as news of the deal started trickling in. The Nifty pharma index too slipped 90 pts to 21,722, signalling weak sentiment in the pharma sector stocks. 

On BSE, OneSource Specialty Pharma (19%), Syngene International (11%), Sigachi Industries (10.41%), Wanbury Ltd (7%), Kwality Pharmaceuticals (5.67%), Supriya Lifescience (6%) and Suven Life Sciences (5.62%) were among the top losers in the afternoon session today. 

Earlier, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen formally signed the India EU trade deal. The pact is likely to significantly improve economic ties between the two sides, creating new opportunities for businesses while reshaping price dynamics for Indian consumers and industries.