Auto and Pharma Stocks Surge Amid India-U.S. Trade Deal Optimism

Rising hopes that India and the U.S. are nearing a long-awaited trade agreement fueled a robust advance in the car and pharmaceutical sectors on Thursday in Indian stock markets. The Nifty Auto and Nifty Pharma indices rose as a result of the positive atmosphere, with export-focused businesses driving the increases.

The Nifty Auto index continued its winning streak for the third straight day, rising 0.75% to stay around 24,065.  The Nifty Pharma index, however, saw an unprecedented 10th consecutive session of advances, rising 0.35% to close at 22,188.

Trade Deal Talks at a Crucial Juncture
A mini-trade agreement between the U.S. and India is reportedly at an advanced stage of negotiations and might be announced this weekend. This comes after U.S. President Donald Trump said earlier this week that an agreement with India will include "much lower tariffs," creating opportunities for more equitable competition. 

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"At the moment, India does not allow anyone to enter," Trump continued.  We will have to cope with a lot fewer tariffs if they do.  A recent trade deal between the U.S. and Vietnam, which removed tariffs on U.S. exports to Vietnam and placed a 20% tariff maximum on Vietnamese exports to the U.S., has a positive tone. As the 90-day brake on tariff escalations ends on July 9, the outcome of that pact has further raised expectations for a favourable India-U.S. agreement.

Top Gainers from the Rally

Auto Sector

• Bosch emerged as the top gainer, surging nearly 6% to trade at ₹34,390.
• Hero MotoCorp and Maruti Suzuki gained over 1% each.
• Samvardhana Motherson and Mahindra & Mahindra rose close to 1%, while Tata Motors, Bajaj Auto, Exide Industries, and MRF traded in the green with marginal gains.

Pharma Sector

• Natco Pharma led the pack with a 5% rise to ₹969 per share.
• Ajanta Pharma climbed over 3.5%, and IPCA Labs rose nearly 3%.
• Biocon and Dr Reddy’s Laboratories gained nearly 2%, while Cipla, Sun Pharma, Glenmark Pharma, and Zydus Life also posted modest gains.

Alembic Pharma’s U.S. Expansion Adds to Market Buzz

In a separate development, Alembic Pharmaceuticals shares rose 2% after its wholly-owned subsidiary acquired Utility Therapeutics Ltd. for approximately $12 million. The move is set to expand Alembic's range of FDA-approved and pipeline products for urinary tract infection (UTI) treatments in the U.S.

The company also recently secured final FDA approval for its generic Doxorubicin Hydrochloride Liposome injection, strengthening its product portfolio in the U.S. market.

Conclusion

The combined optimism around the potential India-U.S. trade deal and positive corporate developments in the pharma space contributed to Thursday’s rally. Market experts believe that a successful agreement before the July 9 deadline could further boost sentiment, especially for export-focused sectors like auto and pharmaceuticals.