Pharma Stocks Outlook
Seen up next week on likely weak stock market
This story was originally published at 22:18 IST on 27 September 2024
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MUMBAI - Shares of defensive stocks such as pharmaceuticals are expected to rise more next week on likely weakness in the overall Indian equity market, analysts at two broking firms said. "Most probably our market will fall on profit booking as it has been hitting record highs for so long ... the defensive nature of pharma may ensure that these stocks will inch higher," a research analyst at a domestic broking firm said.
Foreign broking firm UBS said the balance sheets and free cash flows of Indian pharmaceutical companies are healthy and would help them in diversification. However, the slowdown in India and the US markets, which together account for 70-80% of profits, would imply lower growth, it said.
Shares of Sun Pharmaceutical Industries hit a record high of 1,959.30 rupees on the National Stock Exchange. The stock rose after UBS reportedly initiated coverage on the stock with a 'buy' rating on the stock with a target price of 2,450 rupees. UBS expects the company's patented molecules to double in revenues over four years, ET Now reported.
For Piramal Pharma, Elara Securities expects the company's contract development and manufacturing business to grow much faster than the 7-8% growth in the industry. This would be backed by factors including core competencies in certain hi-tech areas and tailwind from the proposed Biosecure Act in the US. The Act, passed early this month, restricts US federal agencies from doing business with large pharmaceutical companies based in China on the grounds of national security.
TOP HEADLINES
* Alembic Pharma gets US FDA final nod for generic of Invega tablets
* Zydus Lifesciences in pact to develop osteoporosis drug
* Torrent Pharma refutes reports of Shelcal 500 failing quality test
* CNBC-TV18: Alkem Labs in talks to acquire Indian arm of Novartis AG
* Biocon in pact with Tabuk Pharma to mkt glucagon-like peptide-1pdts
* US FDA audit at Jubilant Pharmova arm's unit ends with no observation
* Cipla arm to buy entire 6.9% stake in JV from Jiangsu Xidi Pharma
* AstraZeneca appoints Shilpa Divekar Nirula as board's chairperson
* Biocon arm's two studies show safety of psoriasis treatment drugs
* Granules India launches mobile cancer screening unit in Hyderabad
* AstraZeneca gets nod to import for sale, distribution of Durvalumab
* US FDA issues three observations for Biocon's facility in Bengaluru
* AstraZeneca Pharma to launch Tremelimumab in India in October
* Mankind Pharma board OKs raising up to 100 bln rupees via NCDs, CPs
* US FDA issues zero observation for Glenmark's mfg unit in Aurangabad
* Dr Reddy's Laboratories says US FDA clears Hyderabad R&D centre
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 | 29271.65 | 3.80 | 29695.40 | 28880.90 |
| Alkem Laboratories | 6184.60 | 1.60 | 6258.90 | 6092.90 |
| Aurobindo Pharma | 1511.35 | 1.00 | 1538.50 | 1476.10 |
| Biocon | 368.85 | 1.00 | 382.70 | 361.00 |
| Cipla | 1672.50 | 2.10 | 1709.60 | 1611.50 |
| Divi's Laboratories | 5457.90 | 0.10 | 5639.90 | 5224.60 |
| Dr Reddy's Laboratories | 6749.90 | 3.00 | 6835.50 | 6623.70 |
| Gland Pharma | 1784.05 | (-)0.90 | 1850.00 | 1738.00 |
| GlaxoSmithKline Pharmaceuticals | 2697.50 | (-)0.70 | 2781.00 | 2647.80 |
| Glenmark Pharmaceuticals | 1685.70 | 3.00 | 1720.60 | 1653.60 |
| Granules India | 556.10 | 3.00 | 573.20 | 537.60 |
| Ipca Laboratories | 1478.10 | 3.00 | 1500.00 | 1454.90 |
| Laurus Labs | 464.50 | (-)0.60 | 479.30 | 451.60 |
| Lupin | 2218.50 | 3.10 | 2266.30 | 2139.80 |
| Natco Pharma | 1413.15 | (-)4.60 | 1444.50 | 1370.20 |
| Pfizer | 5829.85 | 6.80 | 6179.40 | 5242.30 |
| Sanofi India | 6751.80 | (-)6.40 | 7033.90 | 6563.90 |
| Sun Pharmaceutical Industries | 1948.70 | 4.50 | 1985.10 | 1897.00 |
| Torrent Pharmaceuticals | 3482.60 | 0.70 | 3562.10 | 3355.50 |
| Zydus Lifesciences | 1075.95 | 2.00 | 1101.60 | 1029.90 |
| Nifty Pharma | 23519.10 | 2.20 | 23744.70 | 23144.50 |
| Nifty 50 | 26178.95 | 1.50 | 26328.50 | 26076.60 |
| S&P Bse Sensex | 85571.85 | 1.20 | 86178.60 | 85171.20 |
End
Reported by Anjana Therese Antony
Edited by Vidhi Verma
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