Pharma Stocks Outlook
May rise next week; GST Council's meeting eyed
This story was originally published at 23:08 IST on 6 September 2024
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MUMBAI - Shares of pharmaceutical companies are likely to shrug off today's weakness and rise next week, with these defensive stocks expected to make gains amid possible weakness in the Indian equity market, two analysts at different domestic broking firms said. The equity market is likely to move in a thin range till the US Federal Reserve's interest rate announcement, due on Sep 18, analysts said.
Also, analysts said the upcoming Goods and Services Tax Council's meeting on Monday will also be closely watched. The Council is likely to submit a report recommending a full exemption from the goods and services tax for all health insurance premiums and reinsurance, news daily Business Standard reported today, citing official sources. A possible reduction in the GST rate on health insurance to 5% from 18% could cost the exchequer 17.30 bln rupees, as per the report.
Analysts also said valuations in the pharma pack are reasonable and that growth prospects of the sector remain strong. The rising number of approvals from drug regulators and robust earnings outlook also make the sector a good bet for investors in the medium to long term, they said.
Today, the Nifty Pharma index closed 0.8% lower at 23043.40 points and was among the least-affected sectoral indices, while the overall domestic stock market saw selling pressure.
TOP HEADLINES
* Sun Pharma says US FDA put osteoarthritis treatment on fast track
* Dr Reddy's Andhra unit gets US FDA 'voluntary action indicated' tag
* Alembic Pharma get US FDA's final nod for Albendazole tablets
* Glenmark Pharma arm to pay $25 mln fine to US Department of Justice
* PRESS: Govt may extend PLI for textiles, pharma, solar photovoltaic
* Lupin launches Mirabegron tablets in US
* Natco Pharma's Canadian arm invests $8 mln in US-based eGenesis
* Mustafa Khwaja Hamied resigns as vice chairman of Cipla from Oct 29
* GSK Pharma gets order for income tax refund of 2.22 bln rupees
* PRESS:Mankind Pharma to raise 90-bln-rupee debt for Bharat Serum buy
* Aurobindo Pharma says new units to drive growth, focus on biologics
* Biocon's subsidiary gets US FDA nod for chronic heart failure ANDA
* China's regulator suspends import of hypertension drug - Dr Reddy s
* PRESS: Dabur, Jubilant bid for 40% stake in Coca-Cola's bottling co
* Zydus Life gets US FDA warning letter for Jarod injectable mfg unit
* Biocon arm Biocon Pharma gets US FDA nod for Daptomycin 500 mg vial
* US FDA clears Biocon's new bulk drug facility in Vizag
* Nomura ups Lupin's target price to 2,427 rupees, keeps 'buy' rating
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 | 29895.75 | (-)1.00 | 30235.40 | 29424.90 |
| Alkem Laboratories | 6309.95 | 2.30 | 6416.20 | 6170.90 |
| Aurobindo Pharma | 1537.40 | (-)2.00 | 1564.00 | 1503.00 |
| Biocon | 373.70 | 4.10 | 393.10 | 359.40 |
| Cipla | 1611.05 | (-)2.70 | 1640.90 | 1593.10 |
| Divi's Laboratories | 5137.80 | 0.90 | 5231.00 | 5015.70 |
| Dr Reddy's Laboratories | 6667.15 | (-)5.20 | 6747.20 | 6613.00 |
| Gland Pharma | 1906.00 | 3.70 | 1938.30 | 1863.40 |
| GlaxoSmithKline Pharmaceuticals | 2831.60 | 3.20 | 2896.00 | 2739.80 |
| Glenmark Pharmaceuticals | 1702.70 | (-)1.70 | 1737.60 | 1677.60 |
| Granules India | 688.10 | (-)4.20 | 717.20 | 669.80 |
| Ipca Laboratories | 1422.90 | 2.80 | 1470.20 | 1392.40 |
| Laurus Labs | 481.35 | 2.40 | 499.10 | 470.10 |
| Lupin | 2256.50 | 0.70 | 2318.00 | 2216.60 |
| Natco Pharma | 1559.90 | 1.50 | 1602.60 | 1510.70 |
| Pfizer | 6164.20 | 1.60 | 6368.10 | 6028.10 |
| Sanofi India | 7351.45 | 8.00 | 7717.20 | 7117.20 |
| Sun Pharmaceutical Industries | 1824.55 | 0.20 | 1871.50 | 1781.50 |
| Torrent Pharmaceuticals | 3416.70 | (-)2.00 | 3487.00 | 3372.70 |
| Zydus Lifesciences | 1100.00 | (-)2.50 | 1128.50 | 1082.90 |
| Nifty Pharma | 23043.40 | (-)0.80 | 23332.70 | 22844.20 |
| Nifty 50 | 24852.15 | (-)1.50 | 25308.20 | 24573.30 |
| S&P Bse Sensex | 81183.93 | (-)1.40 | 82746.40 | 80200.70 |
End
Reported by Anjana Therese Antony
Edited by Tanima Banerjee
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