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Informist, Friday, Aug 9, 2024

MUMBAI – Pharmaceutical stocks could continue to find favour with investors and gain next week, the third in a row, as persistent risk-aversion in global equities may keep driving investors towards defensive stocks, according to analysts. The pharmaceutical sector is also seen to be reasonably valued, compared to several cyclical stocks that are deemed to be trading at expensive valuations.

The recent decision of the Bank of Japan to raise interest rates, the consequent appreciation of the yen, and unwinding of yen carry trades is causing jitters in global markets, noted Krishna Appala, a senior research analyst at Capitalmind Research. Additionally, ongoing geopolitical tensions in West Asia, especially between Iran and Israel, have contributed to the overall market volatility, he said.

Most drugmakers have been able to outperform or meet earnings expectations for Apr-Jun, which is driving some investments into the sector, said the head of advisory at a local brokerage. Within the pharmaceutical sector, players that have a specialised portfolio or a niche pipeline for the next 2-3 years, such as Cipla or Lupin, are seeing good traction in the US, and they could outperform the market, he said. Lupin's stock was recently upgraded by analysts as the company has managed to scale up new launches in the US and garner market share consistently while leading growth among rivals in the Indian market. 

Next week, shares of Glenmark Pharmaceuticals, Apollo Hospitals Enterprise, Metropolis Healthcare, Natco Pharma, Aurobindo Pharma, and Ipca Laboratories will be in the limelight as these drugmakers are scheduled to report earnings in the coming days.

TOP HEADLINES

* Zydus Life Apr-Jun consol PAT rises 31% on year to 14.2 bln rupees
* Alkem Labs Apr-Jun consol PAT rises 90.1% YoY to 5.45 bln rupees
* Concord Biotech Apr-Jun consol PAT up 9.4% YoY at 595.93 mln rupees
* Zydus Life gets US FDA final nod to market Valbenazine capsules
* Earnings Review: One-time income lifts Biocon's Apr-Jun consol PAT
* Biocon Apr-Jun consol PAT up over 6-fold on year to 6.6 bln rupees
* JB Chem Apr-Jun PAT up nearly 20% YoY at 1.73 bln rupees
* AstraZeneca posts loss of 118 mln rupees in Apr-Jun vs profit yr ago
* Alembic Pharma Apr-Jun consol PAT rises 11.6% YoY to 1.35 bln rupees
* Caplin Point Labs' arm got US FDA nod for timolol maleate eye drops
* PRESS: Torrent Pharma, Zydus Life in race to buy JB Chem & Pharma
* Abbott India Apr-Jun PAT rises 13% YoY to 3.28 bln rupees
* Earnings Review: Strong US ops, India growth bolster Lupin's Apr-Jun
* FDC Apr-Jun PAT up nearly 6% YoY to 1.15 bln rupees
* Caplin Point Labs Apr-Jun consol PAT up 19.9% YoY to 1.24 bln rupees
* Alembic Pharma gets US FDA final approval for acitretin capsules
* Lupin Apr-Jun consol PAT rises 77.2% on year, beats estimates
* Earnings Review: Cenexi losses drag down Gland Pharma's Apr-Jun PAT
* Aurobindo Pharma gets US FDA OK to market Estradiol Vaginal Inserts
* Gland Pharma Apr-Jun consol PAT falls 25.9% YoY to 1.44 bln rupees
* Ipca Lab says govt drug body gives nod to NovaLead's Diulcus
* Aurobindo Pharma arm Eugia's unit gets US FDA official action tag
* Lupin gets show cause tax refund notice from Maharashtra authority
* Biocon gets establishment inspection report for Vizag unit
* Sun Pharma Advanced Apr-Jun net loss widens YoY to 968.4 mln rupees
* Earnings Review: Supply chain challenges cap Divi's Labs Apr-Jun PAT
* Divi's Labs Apr-Jun PAT up 25% on yr at 4.30 bln rupees, below view
* Earnings Outlook: Strong US ops to bolster Lupin's profits, margins
* Jyothy Labs' Sanjay Agarwal resigns as CFO
* MedPlus Health Apr-Jun consol PAT jumps nearly 4 times on year
* US FDA issues 3 observations to Gland Pharma's Pashamylaram unit
* GSK Pharma Apr-Jun PAT rises 39% YoY to 1.82 bln rupees
* Eris Life Apr-Jun consol PAT falls 12.3% YoY to 831.8 mln rupees
 

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:

End

Reported by Apoorva Choubey 

Edited by Rajeev Pai

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