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Informist, Friday, Jul. 25, 2025

MUMBAI – Shares of pharmaceutical companies are likely to have a positive momentum next week, fuelled by improved interest from the investors on the back of the India-UK free trade agreement, analysts said. The Nifty Pharma index is expected to remain strong next week, even if the overall market is weak.

The Nifty Pharma and Nifty Healthcare were the only indices to end the session in the green on Friday. The positive sentiment for pharmaceutical and healthcare stocks is likely due to the India-UK free trade agreement, which may help major Indian drug companies to generate larger revenues from the British market, analysts said. 

Pharmaceutical giants such as Dr. Reddy's Laboratories, Cipla, and Aurobindo Pharma got a near-term relief after US President Donald Trump said that he would not immediately impose 200% tariffs on pharmaceutical imports. Trump said the US will start with a low tariff and give pharmaceutical companies 12-18 months to shift their manufacturing facilities to the US.

An analyst at a domestic brokerage firm said that the UK-India trade may not have a significant impact on major pharmaceutical companies, as revenues from the UK are relatively smaller compared to the US or other European countries. The analyst is bullish on pharmaceutical stocks in the near term but said that temporary weakness may hit the drugmakers after the US imposes tariffs on Aug 1. 

Analysts turned positive on Dr Reddy's Laboratories as the company's commentary on product launches, including GLP-1 category products, Semaglutide. Cipla was the best-performing stock on Friday in the Nifty Pharma index and rose 3% despite the company's revenue marginally missing expectations. The company posted a 10% on year growth in the bottom line, the lowest profit growth in 10 quarters. 

Natco Pharma was the biggest loser in the index, falling over 3%. The Nifty Pharma index ended 0.5% up at 22662.70 points. Analysts said the index is likely to find support at 22400 points and face resistance at 22800 points. During the week, the Nifty Pharma index rose 0.3% compared with a 0.5% decline in the Nifty 50. 

TOP HEADLINES

* Earnings Review:Cipla Q1 consol PAT growth at 10-qtr low, beats sales growth
* IPO Alert: Anlon Healthcare gets SEBI nod for up to 14-mln-shr fresh issue
* Sun Pharma arms to pay $200 mln to settle antitrust case in Pennsylvania, US
* HC notice to ER Squibb on Zydus Lifesciences plea in Nivolumab patent case
* Natco Pharma Hyderabad API unit gets observation from US FDA
* Zydus Life gets tentative US FDA nod for cancer-treating ibrutinib tablet
* Lupin gets US FDA approvals for Liraglutide, Glucagon injectable products
* Analyst Concall: Dr Reddy's says Revlimid sales to fall by Q3; Q2 sales unch
* India Ratings revises Glenmark's long-term outlook to positive from stable
* Dr Reddy's says plans to launch 26 GLP-1 pdts in 10 yrs; Semaglutide key pdt
* Earnings Review: Dr Reddy's Q1 PAT rise trails revenue growth on higher cost
* NATCO Pharma to invest INR 41 bln in S Africa to buy stake in co, set up arm
* Syngene Intl Apr-Jun PAT rises 0.1% YoY to INR 740 million
* Biocon arm Biocon Biologics launches Nepexto in Australia
* Govt extends deadline to submit application for export of pharma grade sugar
* Piramal Pharma OKs decommissioned unit sale to Global Pharma for INR 85 mln
* Dr Reddy's API facility in US gets 'voluntary action indicated' FDA report
* CARE ups Piramal Pharma's long-term bank facilities rtg to 'AA' from 'AA-'
* Cipla acquires 20% in medical devices co iCalltech for INR 50 mln
* IPO Alert: Anthem Biosciences ends at INR 730.35, up 28% from issue price
* Sun Pharma completes phase-3 trial of tildrakizumab for psoriatic arthritis
* IPO Alert: Anthem Biosciences to list Mon; issue price at INR 570 per share
* US FDA issues 7 observations to Dr Reddy's Srikakulam formulations unit
* Granules India's joint MD & CEO resigns, quits board effective Jul 31

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

Reported by P. Madhu Kumar

Edited by Saji George Titus

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