Pharma Stocks Outlook
Seen in range with negative bias on lack of triggers
This story was originally published at 18:47 IST on 29 August 2025
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MUMBAI – Stocks of pharmaceutical companies are expected to remain range-bound next week with a negative bias. This is because of lack of near-term triggers, uncertainties around US tariffs, and structural challenges of the sector like margin volatility, according to analysts. Even though the temporary exemption from US tariffs offers short-term relief to pharmaceutical companies, analysts say that expectations of softer earnings for the September quarter could weigh on the market performance of Indian drug makers in the coming weeks.
Earlier this week, US President Donald Trump reiterated his intent to slash drug prices by as much as "1,400–1,500%" and threatened higher levies on pharmaceutical imports, another negative factor that is weighing on the sentiment for the sector. Contrary to this, some analysts pointed out that the US was not in a position to impose higher tariffs or even slash prices as drug companies have a thin margin of 10-12% in the generics segment in the country, which is the biggest market for drug makers from around the globe.
"Indian pharmaceutical companies have the highest US Food and Drug Administration approvals and thus the medications sold are highly reliable with affordable prices, hence it is highly unlikely for the US to impose higher tariffs," said Umesh Laddha, a research analyst at Nirmal Bang Equities. He said the US market currently has no alternative, so investors are likely to look past Trump's aggressive comments on imposing pharmaceutical tariffs.
Investors will monitor developments around new product launches by pharmaceutical majors such as Dr. Reddy's Laboratories, Sun Pharmaceutical Industries, Cipla, Zydus Lifesciences, and Aurobindo Pharma. Market participants suggest Indian drug makers are planning a plethora of new launches in the upcoming quarters as the Revlimid expiry nears.
"Nifty Pharma is expected to move in a broad range of 21500-22500 in the near term," said Jigar Patel, senior manager of equity research at Anand Rathi Shares & Stock Broker. The Nifty Pharma index ended flat Friday at 21804.05 points. IPCA Laboratories was the worst-performer in the index that fell over 2% followed by Biocon and Alkem Laboratories which ended over 1% lower. Granules India emerged as the biggest gainer Friday and rose over 5%.
TOP HEADLINES
* Zydus Life gets positive results for clinical trials of Saroglitazar drug
* IPO Alert: Anlon Healthcare issue subscribed over 3 times as of second day
* Sai Life Sciences completes Phase II of Production Block 11 at Bidar unit
* CRISIL Ratings ups Cohance Life long-term bk facility rtg to 'AA-' from 'A+'
* TPG Asia exits Sai Life Sciences via bulk deals for INR 26.76 bln
* Biocon arm gets US FDA tentative approval for diabetes tablet Sitagliptin
* IPO Alert: Anlon Healthcare issue opens; subscribed nearly 2 times on Day 1
* Dr Reddy's gets HC stay on tax reassessment over merger with holding co
* ICRA ups rating on Wockhardt's long-term facilities to 'BBB' from 'BBB-'
* Eris Life gets Brazil regulator's OK for Ahmedabad sterile injectable unit
* Gland Pharma gets US FDA OK for bioequivalent of Vasostrict injection
* Aurobindo Pharma arm CuraTeQ gets UK drug regulator's OK to market Dazublys
* GSK Pharma forays into oncology in India with Jemperli, Zejula therapies
* IPO Alert: Amanta Healthcare sets price band at INR 120-INR 126 per share
* ANALYSIS:Pharma, healthcare cos beat Q1 PAT growth estimate, sales miss view
* Eris Life's Ahmedabad unit gets approval from Brazil's regulatory body
* IPO Alert: Molbio Diagnostics files DRHP for fresh issue, OFS
* Akums Drugs in pact with Zambia govt to set up JV, gets orders worth $50 mln
* In relief to Mankind Pharma, HC asks trademark registry to advt Petkind mark
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 | Resistance | Support |
Abbott India | 31480.00 | (-)1.20 | 32210.00 | 30950.00 |
Alkem Laboratories | 5303.50 | (-)2.30 | 5424.50 | 5230.50 |
Aurobindo Pharma | 1027.90 | (-)2.10 | 1049.40 | 1009.20 |
Biocon | 348.35 | (-)3.10 | 359.50 | 341.60 |
Cipla | 1589.40 | (-)0.20 | 1613.10 | 1555.90 |
Divi's Laboratories | 6131.50 | (-)0.30 | 6219.20 | 6048.20 |
Dr Reddy's Laboratories | 1260.10 | (-)1.40 | 1281.40 | 1230.20 |
Gland Pharma | 1871.50 | (-)4.40 | 1927.40 | 1824.60 |
GlaxoSmithKline Pharmaceuticals | 2785.00 | (-)0.50 | 2847.70 | 2719.70 |
Glenmark Pharmaceuticals | 1923.90 | (-)0.70 | 1964.60 | 1890.40 |
Granules India | 492.25 | 7.40 | 536.00 | 446.00 |
Ipca Laboratories | 1384.40 | (-)2.40 | 1427.70 | 1358.50 |
Laurus Labs | 856.90 | (-)2.50 | 879.30 | 843.60 |
Lupin | 1894.90 | (-)4.00 | 1928.60 | 1873.20 |
Natco Pharma | 862.00 | (-)2.30 | 879.60 | 846.70 |
Pfizer | 5156.00 | (-)9.00 | 5269.00 | 5049.00 |
Sanofi India | 5144.00 | (-)1.70 | 5250.00 | 5022.00 |
Sun Pharmaceutical Industries | 1594.50 | (-)2.90 | 1616.60 | 1564.80 |
Torrent Pharmaceuticals | 3559.80 | (-)3.40 | 3627.90 | 3519.30 |
Zydus Lifesciences | 981.05 | (-)0.80 | 998.90 | 960.30 |
Nifty Pharma | 21804.05 | (-)2.10 | 21996.20 | 21600.80 |
Nifty 50 | 24426.85 | (-)1.80 | 24635.80 | 24300.30 |
S&P Bse Sensex | 79809.65 | (-)1.80 | 80523.00 | 79385.10 |
End
Reported by P. Madhu Kumar
Edited by Subhojit Sarkar
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