New Delhi, Sept. 5 -- The uncertainty over tariffs being imposed on pharmaceuticals by the US is making investors cautious about the sector. The market makes for a large chunk of revenue of India's top drugmakers. The Donald Trump administration has been teasing hefty tariffs on pharmaceutical imports for months now.

While Indian exporters are expected to come out of this largely unscathed, either by avoiding tariffs on account of low-priced generics or by passing on the costs, the uncertainty is hurting the market's outlook.

"Clearly, it is the overhang that is worrying the investors a little bit. the way the markets are approaching it is to say let's wait and watch what happens," Chirag Dagli, fund manager of DSP healthcare fund and D...