Pharma Stocks Outlook
May rise next week on strong long-term view
This story was originally published at 18:52 IST on 23 August 2024
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MUMBAI – Pharmaceutical stocks are seen extending gains next week as the sector remains an attractive bet for long-term investors due to reasonable valuations, strong global demand, and upcoming patent expiries of high value drugs in the next few years, according to analysts. The Nifty Pharma index has been the top gainer among sectoral indices on the NSE so far this month with a gain of 3.5%.
The pharmaceutical sector is showing encouraging growth momentum, Krishna Appala, senior research analyst at Capitalmind Research, said in a note. Bulk drug and contract research and development players are seeing margins stabilise as demand increases, he said.
Axis Securities believes the sector is set for a high single-digit growth trajectory in the current financial year, both in domestic and US markets. The US business will likely see continued strength as prices recover, and new product launches provide further momentum, it said.
In India, chronic therapies remain the backbone of growth, supported by price hikes and strategic field expansions, Axis Securities added. With raw material and freight costs stabilising, and price erosion in the US market moderating, margins can improve further as companies achieve a better product mix, the brokerage added. Krishna Institute of Medical Sciences, Lupin, and Aurobindo Pharma are the brokerage's top picks.
TOP HEADLINES
* Sun Pharma launches tedizolid phosphate 200-mg tablets in India
* Dr Reddy's Andhra unit gets EU OK for new pdt line, blood cancer drug
* Dr Reddy's Duvvada unit gets EU good manufacturing certificate
* US FDA asks Aurobindo Pharma arm Eugia to conduct six-system audit
* Procter & Gamble Health Apr-Jun, Jul-Jun earnings detailed table
* US FDA assigns voluntary action indicated tag to Divi's Lab Unit-II
* PRESS: Ipca Labs targets $200-mln US revenue in 12-18 months
* Granules India's arm gets US FDA nod for Cuvposa generic
* Glenmark Pharma arm launched Olopatadine Ophthalmic Solution in US
* MedPlus Health gets NCLT OK to merge with arm MHS Pharmaceuticals
* Jubilant Pharmova's step-down arm to invest 14.4 mln euro in France
* Brazil drug agency issues zero observations to Caplin Point arm unit
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 | 29065.85 | 4.10 | 29638.40 | 28363.80 |
| Alkem Laboratories | 5753.85 | 1.30 | 5840.90 | 5682.00 |
| Aurobindo Pharma | 1538.20 | 2.40 | 1558.40 | 1515.50 |
| Biocon | 351.60 | 3.10 | 360.60 | 346.30 |
| Cipla | 1574.55 | (-)0.10 | 1593.60 | 1558.90 |
| Divi's Laboratories | 4855.95 | 4.80 | 4999.40 | 4757.30 |
| Dr Reddy's Laboratories | 6954.50 | 2.40 | 7018.10 | 6898.20 |
| Gland Pharma | 1868.70 | (-)3.90 | 1938.70 | 1830.60 |
| GlaxoSmithKline Pharmaceuticals | 2944.00 | 1.30 | 2996.00 | 2870.00 |
| Glenmark Pharmaceuticals | 1686.65 | 7.70 | 1711.50 | 1652.60 |
| Granules India | 683.65 | 3.20 | 692.40 | 673.30 |
| Ipca Laboratories | 1386.75 | 3.70 | 1421.20 | 1359.80 |
| Laurus Labs | 446.20 | 3.90 | 457.50 | 438.60 |
| Lupin | 2093.55 | 0.40 | 2130.90 | 2068.50 |
| Natco Pharma | 1558.15 | 6.60 | 1612.60 | 1493.10 |
| Pfizer | 5855.30 | 0.10 | 6062.00 | 5721.30 |
| Sanofi India | 6856.40 | 2.00 | 6955.00 | 6759.80 |
| Sun Pharmaceutical Industries | 1775.75 | 1.90 | 1799.30 | 1740.20 |
| Torrent Pharmaceuticals | 3349.35 | 0.00 | 3411.70 | 3309.90 |
| Zydus Lifesciences | 1178.70 | (-)0.80 | 1230.10 | 1148.30 |
| Nifty Pharma | 22527.85 | 1.90 | 22686.20 | 22371.70 |
| Nifty 50 | 24823.15 | 1.20 | 24904.50 | 24731.00 |
| S&P BSE Sensex | 81086.21 | 0.80 | 81415.20 | 80718.80 |
End
Reported by Apoorva Choubey
Edited by Deepshikha Bhardwaj
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