Pharma Stocks Outlook
Seen slightly up on caution before Fed meet Wed
This story was originally published at 22:33 IST on 13 September 2024
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MUMBAI - Shares of pharmaceutical companies are expected to rise slightly while the overall market may exercise some caution ahead of the US Federal Reserve's interest rate decision on Wednesday. Though investors widely expect the Fed to cut rates next week, there is a debate about the quantum, with some expecting a 25-basis-point cut and others a 50-bps cut.
Pharmaceuticals are essential products in case of an economic downturn and any possibility of caution in markets makes them an attractive bet historically, analysts tracking the sector said. Also, reasonable valuation of pharma stocks, along with a rising number of regulatory approvals and a robust earnings outlook are luring investors to this pack, an analyst tracking the sector at a domestic broking firm said.
Early this week, pharma stocks rose sharply after the Biosecure Act was passed in the US on Monday. The Act restricts US federal agencies from doing business with large pharma companies based in China due to national security. This could benefit domestic pharma players as India provides meaningful cost advantages other than China and India has the highest number of US Food and Drug Administration-approved plants outside the US, Bajaj Finserv Asset Management Co said in its report.
PhillipCapital Institutional Equity said in a research report Tuesday that Sun Pharmaceutical Industries is positioned as the best defensive and structural investment bet among its peers. The broking firm has upgraded the stock rating to 'buy, with a target price of 2,050 rupees. Today, the stock closed 0.6% lower at 1,853.75 rupees on the National Stock Exchange, about 196 rupees lower than PhillipCapital's target price.
TOP HEADLINES
* PRESS: Alkem Laboratories enters race to buy JB Chemicals stake
* HC junks order asking Rebanta not to use 'Rebaheal' in Dr Reddy's case
* Aurobindo Pharma arm's new Vizag unit gets US FDA's nod for first pdt
* Dr Reddy's, Pidilite say hired SEBI Buch's spouse for expertise, svcs
* US FDA tags Jubilant Pharmova arm's unit 'voluntary action indicated'
* Zydus Life completes phase 2 (a) clinical trial of Usnoflast
* Granules India says Hyderabad unit got 6 observations from US FDA
* Sun Pharma says US FDA put osteoarthritis treatment on fast track
* Dr Reddy's Andhra unit gets US FDA 'voluntary action indicated' tag
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 | 29559.00 | (-)1.10 | 29929.90 | 29321.50 |
| Alkem Laboratories | 6366.25 | 0.90 | 6494.60 | 6257.00 |
| Aurobindo Pharma | 1567.25 | 1.90 | 1608.40 | 1534.40 |
| Biocon | 378.95 | 1.40 | 389.80 | 367.10 |
| Cipla | 1659.70 | 3.00 | 1683.20 | 1631.80 |
| Divi's Laboratories | 5498.65 | 7.00 | 5606.50 | 5349.10 |
| Dr Reddy's Laboratories | 6660.70 | (-)0.10 | 6721.00 | 6616.90 |
| Gland Pharma | 1878.25 | (-)1.50 | 1907.30 | 1843.80 |
| GlaxoSmithKline Pharmaceuticals | 2905.10 | 2.60 | 2946.10 | 2829.00 |
| Glenmark Pharmaceuticals | 1753.70 | 3.00 | 1773.50 | 1719.80 |
| Granules India | 555.00 | (-)19.30 | 597.60 | 519.80 |
| Ipca Laboratories | 1474.15 | 3.60 | 1502.10 | 1429.80 |
| Laurus Labs | 505.55 | 5.00 | 513.30 | 499.10 |
| Lupin | 2256.45 | 0.00 | 2291.00 | 2232.00 |
| Natco Pharma | 1582.50 | 1.50 | 1634.20 | 1546.20 |
| Pfizer | 6093.55 | (-)1.20 | 6219.70 | 6013.90 |
| Sanofi India | 7156.10 | (-)2.70 | 7278.70 | 7072.80 |
| Sun Pharmaceutical Industries | 1853.75 | 1.60 | 1870.30 | 1843.10 |
| Torrent Pharmaceuticals | 3451.70 | 1.00 | 3532.70 | 3384.00 |
| Zydus Lifesciences | 1118.55 | 1.70 | 1132.70 | 1104.40 |
| Nifty Pharma | 23457.65 | 1.80 | 23604.10 | 23291.90 |
| Nifty 50 | 25356.50 | 2.00 | 25497.90 | 25221.80 |
| S&P Bse Sensex | 82890.94 | 2.10 | 83318.70 | 82439.30 |
End
Reported by Anjana Therese Antony
Edited by Ashish Shirke
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