Trump Tariff Proof Sectors to Invest in 2025
In the age of globalization and digitalization, the Indian market is affected by global events. The U.S. market is the biggest trading market in the world. Any stir in the market creates a ripple effect across the globe. One such event is the recent victory of the Republican-led government under Trump's leadership. Donald Trump will take charge on January 20, 2025.
In this blog, we will focus on the sector expected to perform in 2025 in the Indian equity market. Now, the question is why we are so concerned with his presidency. Well, there is no straight answer to this. But Trump’s trade tariff and a more protectionist approach to international trade will impact the direction of the U.S. dollar and business relations with other countries.
According to Moody’s ratings, India and other Asian nations are expecting to benefit from the escalating US-China tensions and political restrictions on investments in critical sectors.
One of the sectors that could be highly impacted is the Indian pharma sector. Nearly 50-60% of the sector revenue derives from the U.S. market. Indian CDMOs (contract development and manufacturing organizations) could benefit from the proposed US Bio-secure Act.
Here are three top picks from the sectors that are expected to perform well in 2025.
Top 3 Pharma Pics
Dr Reddy:
Source: Trading view
Dr Reddy jumped 4% in the first week of January after brokerage firm Nuvama Institutional Equities upgraded its rating to “buy”. The pharma giant is working on strategies to mitigate the impact of Revlimid, a cancer drug patent expiry in 2026.
CMP: Rs1,370
Target Price: Rs1,553
Lupin:
Source: Trading view
Lupin acquired the Huminsulin product line from Eli Lilly and Company in India. The takeover will strengthen Lupin’s diabetes care portfolio and further its commitment to providing high-quality and affordable diabetes healthcare.
CMP: Rs2,250
Target Price: Rs 2,500 (Axis Securities)
Max Health Care:
Source: Tradingview
Max Health Care stock reached an all-time high of Rs 1,218.9 in January 2025. The hospital chain is one of India’s largest healthcare organizations. The healthcare provider is committed to delivering excellent patient care with cutting-edge research. Further, it also operates a homecare and pathology business under the brand names Max @Home and Max Labs respectively.
CMP: Rs1,203
Target Price: Rs 1,500
As per the industry report, the Indian pharma industry is likely to grow 9-11% in 2025-26 (FY 26), fueled by price hikes, new domestic launches, and increased export demand from regulated markets. And not to forget with the Trump-led administration Indian sector could be a direct beneficiary.
We advised traders to understand the market and follow proper risk management before opening any trading or investment opportunity.