Synopsis
On April 4, Vijaya Diagnostic Centre's stock plummeted by Rs 26.15, or 2.7%, closing at Rs 944.55 on the NSE, amid a broader market correction. This marks a significant decline over the past month and in comparison to the previous year.Key Takeaways
- Vijaya Diagnostic shares fell by 2.7% to Rs 944.55.
- Stock has declined by 3.41% over the last five days.
- Year-to-date decline stands at 11.12%.
- Trump's comments led to a drop in pharmaceutical stocks.
- Sector-specific tariffs are under review by the US government.
New Delhi, April 4 (NationPress) The stock of Vijaya Diagnostic Centre Limited faced significant pressure on Friday, contributing to a wider market correction, and closing the day down by Rs 26.15 or 2.7 percent at Rs 944.55 on the National Stock Exchange (NSE).
Over the past five trading sessions, Vijaya Diagnostic shares have decreased by Rs 33.35 or 3.41 percent. The negative trend persisted throughout the last month, with a total drop of Rs 51.90 or 5.21 percent.
When analyzing a longer timeframe, the shares of this prominent diagnostic center chain have fallen by Rs 44.65 or 4.51 percent over the last six months. Year-to-date (YTD), the stocks of Vijaya Diagnostic have experienced a decline of Rs 118.20 or 11.12 percent on the NSE.
In a similar fashion, shares of various Indian pharmaceutical firms, including Aurobindo Pharma, IPCA Laboratories, and Lupin, also saw substantial declines following remarks from US President Donald Trump, who alluded to potential high tariffs on drug imports.
Some of these companies saw a decrease of up to 10 percent, while many others fell between 4 percent and 9 percent.
In statements made aboard Air Force One, Trump indicated that pharmaceutical tariffs would be introduced at levels not previously seen.
He further mentioned that the US is evaluating pharmaceuticals as a distinct category, with an official announcement expected soon.
As a result of these comments, Indian pharmaceutical companies saw a reversal of the gains they had achieved in the preceding session on April 3.
Earlier, shares of drug manufacturers had increased significantly after Trump's initial announcement of reciprocal tariffs that excluded pharmaceuticals; however, this exemption now appears to have been short-lived.
There were prior indications that sector-specific tariffs would not form part of Trump's tariff strategy.
The US government has now signaled its intent to review pharmaceutical and semiconductor imports under Section 232 of the Trade Expansion Act of 1962.
This legislation grants the US President the authority to impose trade restrictions on products deemed a threat to national security.
