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Informist, Friday, Mar. 7, 2025

MUMBAI – Pharmaceutical stocks are expected to consolidate next week and may recover some more of the sharp losses seen over the past three weeks amid anticipation of hefty tariffs by the US on pharma products. Investors could also flock to the 'defensive' sector due to uncertainty over the next likely direction of the market.

The Nifty Pharma index snapped a three-week losing streak and closed at 20378.30 points Friday. It gained almost 3% this week, outpacing the 2% rise of the Nifty 50 clocked in the same duration. With this near-3% rise, the sectoral index has recouped some of the decline of the previous three weeks, where it fell 10%.

Worries about potential tariffs of around 25% directed towards the sector may continue to cloud investor sentiment. While pharma stocks already took a beating following news about likely US tariffs, there is still a lack of clarity about the quantum and impact, according to analysts.

While sectors such as automobiles, textiles, chemicals may face tariffs, pharmaceuticals may not be impacted much given that it may be seen as a necessity for the US, Nirmal Bang Institutional Equities said in a report Friday. Pharmaceutical products account for the bulk of exports to the US, after electrical equipment, the brokerage firm said.

Meanwhile, the rise of the Indian currency will also be monitored closely, especially after it hit a near-two-week high this week. The rupee had hit a record low of 87.95 to the dollar on Feb. 10. The depreciation of the Indian unit against the dollar had boosted sentiment towards the sector, as several companies are highly export-dependent.

Shares of Biocon and Glenmark Pharmaceuticals were the top gainers in the Nifty Pharma index this week, as both rose around 10% each. On the other hand, only two stocks in the 20-constituent index ended lower. The Nifty Pharma index is expected to face resistance around 20590 points and find support at 20220 points.

TOP HEADLINES

* Dr Reddy's to sell 14 products in US markets to Senores Pharmaceuticals

* Biocon arm Biocon Biologics, Civica to expand access of Insulin Aspart in US

* Biocon arm gets US FDA nod for Lenalidomide capsules, Dasatinib tablets

* Eris Life to sell 2 wholly-owned arms to Eris Therapeutics for INR 8.62 bln

* Laurus Labs to invest INR 833 mln in joint venture KRKA Pharma
* AstraZeneca gets drug body OK to import formulations for hyperkalemia drug

* AstraZeneca Pharma gets drug body nod to import Durvalumab solution for sale
* Abbott India says co's name erroneously mentioned in news article
* Zydus Life gets US FDA final approval to manufacture Dasatinib tablets

* Zydus Life to develop combo vaccine for shigellosis, typhoid
* Zydus Life launches ANVIMO for transplant patients; cuts drug cost by 91%
* Aurobindo Pharma says Auro Vaccines cancels licence pact with Hilleman Labs
* Glenmark Pharma's US arm acquires, launches Acetylcysteine injection
* Alkem Labs gets INR 2.11-bln tax demand for assessment year 2021-22
* Mankind Pharma gets additional tax demand of INR 1.12 bln

* Aarti Ind inks pact to infuse INR 167.08-mln capital in Clean Max Indus

Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:

End

US$1 = INR 86.87

Reported by Alina Geogy

Edited by Deepshikha Bhardwaj

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