Pharma Stocks Outlook
Seen in range with positive bias despite tariff woes
This story was originally published at 21:38 IST on 18 July 2025
Register to read our real-time news.Informist, Friday, Jul. 18, 2025
MUMBAI – Despite a looming US tariff threat, the pharmaceutical sector stocks are expected to remain range-bound with a positive bias ahead of the June quarter earnings. The Nifty Pharma index is likely to find support around the 22400 level and resistance at the 22750 level. Domestic brokerages have a positive outlook for the sector in the near term despite US President Donald Trump's threat this week to impose fresh tariffs on drugmakers by Aug. 1. Pharma majors such as Cipla and Dr Reddy's Laboratories are scheduled to announce their June quarter earnings next week.
The Nifty Pharma index ended 0.4% lower Friday at 22592.75 points. This week, the sectoral index outperformed the benchmark indices, rising 1.7% compared with a 0.7% decline in the Nifty 50. During the week, Natco Pharma, Biocon, and Torrent Pharmaceuticals were the top performers, rising 6-8%, while Pfizer and GlaxoSmithKline Pharmaceuticals were the underperformers, declining 3-4%.
Analysts expect Dr. Reddy's Laboratories to post a 14% year-on-year rise in its consolidated net sales for the quarter ended June and an 11% increase in its bottom line. Cipla's top line is expected to grow 5% on year, and net profit is projected to increase 4% during the quarter. Both companies may see pricing pressure in the US, according to the analysts.
Nuvama Institutional Equities expects the sector's growth to be supported by its structural strengths and global relevance in times of US tariff uncertainties, as the Indian market is an affordable alternative compared to European countries. Companies such as Glenmark Pharmaceuticals and Mankind are likely to drive growth, particularly in the cardiac segment. Additionally, the growth of contract development and manufacturing organisations, as well as the increasing demand for GLP-1 drugs like Mounjaro, is expected to contribute to the sector's performance.
The Indian pharmaceutical market showed a strong recovery in June. According to Nuvama Institutional Equities, the domestic market grew 11.5% year-on-year in June, with therapies such as cardiac and respiratory outpacing overall Indian pharmaceutical market growth. Volumes rose 4.8% in June, the strongest showing since November 2023.
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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 | 34125.00 | (-)0.90 | 34621.70 | 33661.70 |
| Alkem Laboratories | 4998.50 | 4.00 | 5083.60 | 4927.20 |
| Aurobindo Pharma | 1139.50 | 1.30 | 1163.10 | 1124.90 |
| Biocon | 398.75 | 6.60 | 410.00 | 390.70 |
| Cipla | 1482.30 | (-)0.20 | 1493.80 | 1464.20 |
| Divi's Laboratories | 6731.50 | (-)1.50 | 6830.80 | 6632.80 |
| Dr Reddy's Laboratories | 1257.50 | 0.20 | 1279.20 | 1240.20 |
| Gland Pharma | 2000.30 | 7.60 | 2052.00 | 1966.20 |
| GlaxoSmithKline Pharmaceuticals | 3138.40 | (-)3.30 | 3231.90 | 3065.70 |
| Glenmark Pharmaceuticals | 2225.50 | 2.00 | 2285.40 | 2164.60 |
| Granules India | 496.15 | 5.80 | 511.40 | 484.90 |
| Ipca Laboratories | 1471.00 | 1.50 | 1499.50 | 1437.90 |
| Laurus Labs | 827.00 | 4.70 | 838.00 | 809.00 |
| Lupin | 1932.20 | 2.00 | 1971.60 | 1906.80 |
| Natco Pharma | 1035.10 | 7.60 | 1064.60 | 1015.70 |
| Pfizer | 5319.50 | (-)3.60 | 5471.80 | 5160.80 |
| Sanofi India | 5951.00 | 0.70 | 6099.70 | 5840.70 |
| Sun Pharmaceutical Industries | 1693.60 | 1.30 | 1719.30 | 1673.90 |
| Torrent Pharmaceuticals | 3521.40 | 6.30 | 3551.10 | 3497.50 |
| Zydus Lifesciences | 974.95 | (-)0.50 | 994.30 | 960.30 |
| Nifty Pharma | 22592.75 | 1.70 | 22816.90 | 22399.60 |
| Nifty 50 | 24968.40 | (-)0.70 | 25236.50 | 24784.60 |
| S&P Bse Sensex | 81757.73 | (-)0.90 | 82626.80 | 81173.60 |
End
Reported by P. Madhu Kumar
Edited by Saji George Titus
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