Sun Pharma Slumps On Tariff Uncertainties, Weak Q1 Earnings; SEBI RA Sees Support At ₹1,560

Sun Pharmaceutical shares slipped over 5% on Friday, weighed down by weak quarterly earnings and growing concerns over the impact of the proposed 25% tariff on Indian goods by US President Donald Trump.

At the time of writing, Sun Pharma shares were down 5% at ₹1,623. The stock was the biggest laggard on the Nifty 50 index.

The pharmaceutical company reported a 20% drop in consolidated net profit to ₹2,279 crore for Q1FY26. However, revenue rose over 9% to ₹13,851 crore, supported by strong growth in India, the US, and other global markets.

Pharma stocks have come under pressure after Trump announced tariffs on Indian exports to the US on Wednesday. Nearly half of America’s generic drug supply comes from India. The Nifty Pharma index fell 3.2%, with all constituent stocks trading in negative territory.

On the technical charts, the stock has witnessed a sharp technical breakdown, said Dhwani Patel, a SEBI-registered analyst with Finversify. 

This decline has pushed the stock decisively below a key cluster of moving averages, including the 20-day EMA at ₹1,688.78, 50-day EMA at ₹1,691.46, and 200-day EMA at ₹1,702.05, Patel noted. 

Adding to the negative outlook, the -DI line of the Directional Movement Index (DMI) has spiked, indicating growing selling pressure. With the breakdown confirmed, immediate support is now seen near ₹1,559. A sustained move below ₹1,624 could trigger further downside toward the ₹1,560 zone.

The analyst cautioned against taking up fresh long positions at current levels.

Sunil Kotak said that Sun Pharma is in a strong demand zone between ₹1,605 and ₹1,635, with the relative strength index (RSI) at 40 acting as key support. 

He expects the stock to consolidate around these levels in the near term but warns that a decisive break below ₹1,605 could lead to further downside.

Retail chatter for Sun Pharma increased on Stocktwits while sentiment turned ‘bearish’.

Year-to-date, the stock has fallen around 14%.

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