Pharma Stocks Outlook
Seen range bound with positive bias next week
This story was originally published at 19:37 IST on 4 July 2025
Register to read our real-time news.Informist, Friday, Jul. 04, 2025
MUMBAI – The Indian pharmaceutical sector is likely to perform positively in the near term, with the Nifty Pharma index expected to trade within the range of 21,600 to 22,200 points next week. Analysts believe the sector will remain range-bound but with a positive bias, driven by the sector's structural strengths and global relevance.
Despite potential tariffs by the US and policy changes, analysts remain optimistic about the sector's prospects. They believe the impact of proposed tariffs will be limited as the US relies heavily on India for its generic pharmaceutical needs. Moreover, most pharmaceutical companies are prepared to pass on any incremental costs arising from tariffs to end-users.
In the near term, the sector may experience some volatility due to investors' anxiety over potential US' policy shifts on foreign-made drugs. The next two months are critical as the US may announce initial steps related to their drug import framework. However, companies like Cipla, with a robust pipeline of products, including gAbraxane, gAdvair, Nilotinib, and gSymbicort, are well-positioned to navigate these challenges, according to a report by Nuvama Instituitional Equities.
Despite an overall positive outlook for the pharmaceutical sector, concern among the Indian drug makers rose after reports of the health ministry's discussions with states, pressing them to cancel the licence of drug companies found guilty of not maintaining quality standards. According to a report in The Economic Times, the Central Drug Standards Control Organisation has been deliberating on the matter with pharmaceutical lobby groups, which have raised objections to the government's plans on imposing new punitive measures.
The Nifty Pharma closed 1% higher Friday at 22384.60 points, gaining 2% from the previous week. Mankind Pharma was the top gainer in the index on Friday and increased over 3% followed by Aurobindo Pharma, up 3%. Abbott India was the worst performer in the index and declined nearly 2%. Out of 20 companies in the Nifty Pharma index, 16 ended in green and four ended in the red zone.
TOP HEADLINES
* Alembic Pharma gets INR 331.1 million tax demand from Sikkim GST officials
* HC bars Patanjali Ayurved from airing disparaging advt against Dabur India
* Alembic Pharma arm acquires US-based Utility Therapeutics for $12 million
* Biocon arm gets European Commission nod to mkt Denosumab biosimilars in EU
* Aurobindo Pharma arm CuraTeQ gets European Commission nod to market Dazublys
* Sigachi Ind confirms 40 dead, over 33 injured in Telangana plant accident
* CARE Ratings ups outlook on Laurus Labs long-term bank facilities to stable
* AstraZeneca Pharma gets drug body's OK to import, sell Durvalumab solution
* Lupin carves out consumer healthcare business into wholly-owned subsidiary
* Lupin gets US FDA nod for bioequivalent of Lotemax ophthalmic gel
* Sigachi Ind Hyderabad unit blast death toll rises to 34, rescue ops underway
* Torrent Pharma hopes to get CCI nod by Dec, start JB Chem integration 2026
* Aurobindo Pharma extends timeline to acquire 26% stake in Swarnaakshu Solar
* Eris Life board OKs reappointing managing director, 3 wholetime directors
* Aurobindo Pharma arm resumes operations at Kakinada Penicillin-G plant
* JB Chemicals board OKs reappointing Nikhil Chopra as CEO for 5 years
* Alembic Pharma gets US FDA nod for generic of Doxil Liposome Injection
* Torrent Pharma to buy JB Chemicals at equity valuation of INR 257 bln
* US FDA issues establishment inspection report to Neuland Lab's Telangana unit
* US FDA issues one observation to Granules India arm's unit in Virginia, US
* Zydus Life, arms make 1st tranche of INR-38.65-mln invest in Torrent Urja 25
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:
| Company | Price | Week-on-Week Change in % | Resistance | Support |
| Abbott India | 34735.00 | (-)0.60 | 36038.30 | 34008.30 |
| Alkem Laboratories | 4886.30 | (-)0.40 | 4944.40 | 4795.20 |
| Aurobindo Pharma | 1191.30 | 6.30 | 1220.70 | 1143.90 |
| Biocon | 380.05 | 7.20 | 386.20 | 369.60 |
| Cipla | 1513.30 | 0.70 | 1529.80 | 1495.60 |
| Divi's Laboratories | 6906.50 | 3.70 | 6982.20 | 6832.20 |
| Dr Reddy's Laboratories | 1307.40 | 0.50 | 1328.30 | 1276.70 |
| Gland Pharma | 1872.70 | 5.10 | 1903.40 | 1843.60 |
| GlaxoSmithKline Pharmaceuticals | 3283.70 | (-)4.50 | 3375.20 | 3229.20 |
| Glenmark Pharmaceuticals | 1830.40 | 7.00 | 1884.50 | 1747.90 |
| Granules India | 492.60 | (-)0.90 | 500.30 | 486.60 |
| Ipca Laboratories | 1422.80 | 6.80 | 1447.50 | 1391.10 |
| Laurus Labs | 776.00 | 10.60 | 791.40 | 748.90 |
| Lupin | 1980.90 | 2.40 | 2017.00 | 1939.00 |
| Natco Pharma | 998.60 | 12.90 | 1026.30 | 951.90 |
| Pfizer | 5784.00 | 1.50 | 5901.30 | 5681.30 |
| Sanofi India | 6081.00 | (-)1.80 | 6257.70 | 5958.70 |
| Sun Pharmaceutical Industries | 1676.30 | (-)0.70 | 1693.30 | 1663.10 |
| Torrent Pharmaceuticals | 3368.00 | 0.80 | 3421.20 | 3303.40 |
| Zydus Lifesciences | 1001.00 | 2.00 | 1020.80 | 989.10 |
| Nifty Pharma | 22384.60 | 2.10 | 22543.60 | 22117.10 |
| Nifty 50 | 25461.00 | (-)0.70 | 25559.60 | 25282.40 |
| S&P Bse Sensex | 83432.89 | (-)0.70 | 83770.90 | 82846.80 |
End
Reported by P. Madhu Kumar
Edited by Akul Nishant Akhoury
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