Pharmaceuticals and AI Sectors Emerge as Outliers Amid Indian Stock Market Slide
· Business · Indian Express, LiveMint, Barron's
Indian benchmark indices Sensex and Nifty fell over 6 percent in September amid foreign investor outflows driven by elevated crude oil prices at $120.86 per barrel, a weak rupee, and high global interest rates. Despite the broader market slump, certain segments like pharmaceuticals and AI-related companies have bucked the downward trend. The Nifty Pharma index surged 23 percent since April, with contract development and manufacturing organisations like Divi’s Laboratories and Laurus Labs posting strong gains over a three-month period. Analysts attribute the pharmaceutical sector's momentum to the US BIOSECURE Act passed in December 2025, which restricted biotechnology sourcing from China and redirected American demand toward Indian alternatives. Market experts note that while surface indices remain weak, underlying activity persists across select growth sectors.
Why it matters
Investors navigating India's volatile equity markets need to identify resilient sectors like pharma manufacturing that benefit from structural geopolitical shifts rather than broad market sentiment.
Read the original report — Indian Express
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