Pharma Stocks Outlook
Seen volatile next week amid Budget, F&O expiry
This story was originally published at 20:05 IST on 19 July 2024
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MUMBAI - Shares of pharmaceutical companies may see volatile movement next week, amidst key events such as the Union Budget, expiry of the July derivatives series and Apr-Jun earnings announcements by a few players, said analysts. The Union Budget is slated for Tuesday while the expiry will happen on Thursday.
In the upcoming Budget, industry experts are hoping for higher allocation for healthcare spending, along with some tax breaks on research and development spending, as more companies are shifting their focus to complex drugs, said a research analyst at a bank-sponsored brokerage house. Some companies also want steps towards simplification of tax structure and other related processes.
Over the last few weeks, the pharmaceutical sector has gained on the back of expectation that drugmakers will report a healthy performance in the June quarter. Continued stability in US generics pricing, along with traction across new markets and ramp-up of niche products is expected to aid profit growth across most companies. The Nifty Pharma index is up 4% for the month, even though it declined 1.6% today.
Brokerage Motilal Oswal Securities expects Divi's Laboratories Ltd and Lupin Ltd to report robust earnings, while Dr. Reddy's Laboratories Ltd is seen underperforming several rivals. Cipla Ltd, Indoco Remedies Ltd and Glenmark Life Sciences Ltd will report their Apr-Jun earnings next week.
TOP HEADLINES
* US FDA issues 2 observations for Zydus Life's Ahmedabad facility
* Divi's Labs gets one observation from US FDA for Vizag unit
* Zydus Life gets US FDA final approval to market Zituvimet tablets
* Caplin Point arm gets US FDA final nod for generic of Akovaz drug
* Jubilant Pharmova consol PAT surges manifold YoY in Apr-Jun
* Earnings Outlook: Sun Pharma consol PAT seen up 29% at 26 bln rupees
* Earnings Outlook:Moderate recovery expected in Laurus Labs' earnings
* Earnings Outlook: Zydus Life's Apr-Jun consol PAT may rise 11% YoY
* Earnings Outlook: Torrent Pharma PAT seen up 24% YoY on higher sales
* Dr Reddy's in pact with Takeda Pharma to mkt Vonoprazan tablets
* Zydus Life Vadodara unit gets 'official action indicated' US FDA tag
* Aurobindo Pharma board approves 7.50-bln-rupee share buyback
* Glenmark Pharma got US FDA final approval for topiramate capsules
* Zydus Life in pact with Takeda Pharma to market Vonoprazan in India
* Sanofi to invest 400 mln euros on Hyderabad centre in next six yrs
* Cipla gets tax demand of 7.73 bln rupees from income-tax authority
* SC upholds NPPA's demand against Sun Pharma for overcharging on drug
* Lupin sells US women's health specialty ops to Evofem Biosciences
* Alkem Labs incorporates wholly-owned arm to develop novel medicines
* Aurobindo Pharma board to mull buyback of equity shares Thu
* US FDA issues two observations to Suven Pharma's arm Casper Pharma
* US FDA classifies Cipla Kurkumbh unit as voluntary action indicated
* US FDA issues zero observation to Piramal Pharma's Ahmedabad unit
* US FDA clears Lupin arm's manufacturing unit in Gujarat
* Alembic Pharma gets US FDA tentative OK for Selexipag for injection
Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-Week Change in % | Resistance | Support |
| Abbott India | 27404.15 | (-)0.30 | 28854.10 | 26496.10 |
| Alkem Laboratories | 5133.65 | (-)1.30 | 5327.90 | 5014.50 |
| Aurobindo Pharma | 1330.80 | 0.30 | 1366.10 | 1306.00 |
| Biocon | 335.20 | (-)4.40 | 348.00 | 327.70 |
| Cipla | 1485.50 | (-)1.80 | 1516.40 | 1464.80 |
| Divi's Laboratories | 4519.80 | (-)0.40 | 4625.30 | 4443.70 |
| Dr Reddy's Laboratories | 6636.00 | (-)1.20 | 6752.30 | 6568.10 |
| Gland Pharma | 1990.60 | (-)2.00 | 2033.00 | 1942.20 |
| GlaxoSmithKline Pharmaceuticals | 2573.15 | 0.10 | 2613.10 | 2521.10 |
| Glenmark Pharmaceuticals | 1412.95 | 2.30 | 1438.90 | 1370.10 |
| Granules India | 503.00 | (-)2.20 | 524.30 | 490.00 |
| Ipca Laboratories | 1193.80 | (-)2.40 | 1242.10 | 1165.80 |
| Laurus Labs | 440.40 | (-)5.00 | 465.30 | 426.70 |
| Lupin | 1786.65 | (-)0.60 | 1842.90 | 1748.50 |
| Natco Pharma | 1223.35 | 3.30 | 1280.30 | 1183.50 |
| Pfizer | 5059.35 | 4.20 | 5155.00 | 4985.30 |
| Sanofi India | 6349.80 | (-)0.40 | 6443.20 | 6293.30 |
| Sun Pharmaceutical Industries | 1568.65 | (-)0.60 | 1599.10 | 1549.90 |
| Torrent Pharmaceuticals | 2946.35 | (-)0.10 | 3104.30 | 2856.10 |
| Zydus Lifesciences | 1144.45 | (-)2.60 | 1183.40 | 1117.70 |
| Nifty Pharma | 20425.40 | (-)0.90 | 20839.10 | 20191.60 |
| Nifty 50 | 24530.90 | 0.10 | 24977.90 | 24284.60 |
| S&P Bse Sensex | 80604.65 | 0.10 | 81985.80 | 79808.50 |
End
Reported by Apoorva Choubey
Edited by Tanima Banerjee
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