Pharma Stocks Outlook
Seen in range despite GST cut; Trump tariffs in focus
This story was originally published at 17:32 IST on 5 September 2025
Register to read our real-time news.Informist, Friday, Aug. 05, 2025
MUMBAI – Pharmaceutical company shares are likely to be range-bound next week as investors will look past the recently announced cut in goods and services tax, with the threat of US tariffs on pharmaceutical products still overhanging. Analysts said the GST cuts will not be enough to provide immunity to most drug-makers, as the rationalisation of taxes will likely aid the growth of the domestic pharmaceutical market. But in terms of export growth, it may not move the needle.
On Friday, Nifty Pharma ended marginally higher at 21924.80 points. The index is expected to find support at 21300 levels and encounter resistance around 22500-22700 levels. Glenmark Pharmaceuticals was the top gainer in the index, ending over 3% higher Friday, followed by Biocon, which rose nearly 2%. Abbot India closed over 3% lower, making it the biggest loser among the pack. Divis Laboratories and Cipla fell around 2% each. For the week ended Friday, the Nifty Pharma index closed 0.6% higher.
"Domestic players like Mankind Pharma and Glenmark Pharmaceuticals may get some benefit from the recently announced tax cuts. Indian customers are likely to choose branded medications over affordable drugs due to a decrease in price gap," said an analyst at a domestic brokerage. The analyst also added that the exemption of tax on some essential drugs may boost consumption and volume in the branded market. However, there will be no material impact on major companies like Dr. Reddy's Laboratories, Sun Pharmaceutical Industries and Cipla, as their exposure to the US market is higher compared to domestic players.
"The new GST rate cut will largely impact biosimilars, which is a much smaller market as compared to the generics market... The Indian pharmaceutical sector is looking for cues on the pharmaceutical tariffs threatened by the US... GST cuts will have a negligible impact on the Indian pharma market," said Param Desai, research analyst at Prabhudas Lilladher Institutional Equities.
TOP HEADLINES
* Cipla launches non-antibiotic drug Huena for urinary tract infections
* Glenmark Pharma to begin phase-III trials for cancer drug Envafolimab
* US FDA issues 5 observations to Biocon arm's unit in Bengaluru
* Zydus Life arm, Synthon in licensing pact for Ozanimod capsules in US market
* Fitch affirms Biocon Biologics issuer default rtg at 'BB-'; outlook stable
* IPO Alert: Anlon Health ends 1% above issue price on stock market debut
* IPO Alert: Corona Remedies gets SEBI approval for offer for sale
* IPO Alert: Allchem Lifescience gets SEBI OK for OFS, INR 1.9-bln fresh issue
* Caplin Point arm gets US FDA's final OK for milrinone lactate injection
* Lupin gets US FDA's approval for Risperidone injectable suspension
* IPO Alert: Anlon Health shares to list Wed; issue price set at 91 per share
* DCM Shriram, Aarti Ind in long-term pact for chlorine supply via pipeline
* Zydus Life launches trivalent influenza vaccine 'VaxiFlu' in India
* Glenmark Pharma's US arm to launch Eribulin Mesylate injection in September
* IPO Alert: Amanta Healthcare offer subscribed 4.6 times on first day
* HC bars K-Smatco from using process that infringes Frimline's anaemia patent
* TPG Asia sells entire 14.72% stake in Sai Life Sciences
* US FDA issues 5 observations to Aurobindo Pharma arm's Telangana mfg unit
* IPO Alert: Amanta Healthcare raises INR 378 mln from anchor investors
* IPO Alert: Anlon Healthcare issue closes; subscribed over 7 times
* INTERVIEW: Sai Life Sciences CFO sees revenue growing 15-20% CAGR in 3-5 yrs
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 | 31150.00 | (-)1.10 | 32876.70 | 30166.70 |
| Alkem Laboratories | 5333.50 | 0.60 | 5418.50 | 5234.50 |
| Aurobindo Pharma | 1044.10 | 1.60 | 1065.60 | 1022.40 |
| Biocon | 363.70 | 4.40 | 371.60 | 350.00 |
| Cipla | 1553.40 | (-)2.30 | 1598.60 | 1527.40 |
| Divi's Laboratories | 6009.00 | (-)2.00 | 6238.00 | 5888.00 |
| Dr Reddy's Laboratories | 1268.10 | 0.60 | 1282.60 | 1246.40 |
| Gland Pharma | 1892.20 | 1.10 | 1964.00 | 1844.20 |
| GlaxoSmithKline Pharmaceuticals | 2770.30 | (-)0.50 | 2886.40 | 2697.00 |
| Glenmark Pharmaceuticals | 2051.90 | 6.70 | 2097.00 | 1968.40 |
| Granules India | 511.40 | 3.90 | 525.00 | 500.50 |
| Ipca Laboratories | 1335.00 | (-)3.60 | 1361.40 | 1318.80 |
| Laurus Labs | 880.65 | 2.80 | 896.70 | 863.20 |
| Lupin | 1943.90 | 2.60 | 1986.60 | 1910.60 |
| Natco Pharma | 852.75 | (-)1.10 | 873.50 | 840.60 |
| Pfizer | 5118.00 | (-)0.70 | 5226.00 | 5036.00 |
| Sanofi India | 5090.50 | (-)1.00 | 5147.50 | 5037.50 |
| Sun Pharmaceutical Industries | 1593.60 | (-)0.10 | 1613.30 | 1565.70 |
| Torrent Pharmaceuticals | 3579.10 | 0.50 | 3668.80 | 3514.60 |
| Zydus Lifesciences | 1013.85 | 3.30 | 1053.40 | 985.30 |
| Nifty Pharma | 21924.80 | 0.60 | 22266.60 | 21671.30 |
| Nifty 50 | 24741.00 | 1.30 | 24942.40 | 24520.90 |
| S&P BSE Sensex | 80710.76 | 1.10 | 81404.90 | 79974.10 |
End
Reported by P. Madhu Kumar
Edited by Saji George Titus
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
