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Informist, Friday, Dec. 5, 2025

MUMBAI – Shares of pharmaceutical companies are likely to remain in a narrow range next week, with small- and medium-sized companies in the sector likely to outperform sector heavyweights, analysts said. After robust September earnings, analysts are waiting for the next trigger that may boost investor confidence.

The Nifty Pharma is likely to move in the range of 22700-22500 points and face resistance around 23150 points, Vipin Kumar, assistant vice president at Globe Capital Market, said. For the week ended Friday, the index fell marginally to 22947.15 points.

Small and medium-sized companies in the pharma sector are expected to outperform their larger peers. "Nifty Pharma index has been largely consolidating around 22500 levels since July and despite recovery in the headline index, it failed to exhibit any momentum due to lacklustre performance from sectoral heavyweights. However, second-tier names from the sector are showing significant strength," ICICI Direct said in a report.

Pharmaceutical companies saw growth in the September quarter on the back of outperforming products rather than because of any wider structural strengths in the sector, according to Vishal Manchanda, senior vice president covering pharmaceutical companies at Systematix Group. "Lupin probably did better than expectations due to (certain) products, whereas Orchid underperformed due to a fall in API (Active Pharmaceutical Ingredients) pricing," the analyst said. Analysts await further triggers for cues on the December quarter performance.

Select companies in contract development and manufacturing are likely to perform well on traction for specific products, analysts said. Some of these companies' pipeline projects could be game-changers, NDTV Profit reported, citing a Jefferies report. The brokerage believes that new contract wins by Divis Laboratories and Piramal Pharma will result in meaningful projects.

Brokerages believe that a favourable deal between India and the US could revive traction in pharmaceutical stocks. The two countries are likely to agree on the framework for a trade deal within this calendar year to address the reciprocal tariffs imposed by Washington on Indian exports, Commerce Secretary Rajesh Agrawal said last Friday. 

On Friday, the Nifty Pharma constituents ended mixed. Shares of Wockhardt, Biocon, and Laurus Labs rose 1-2% and those of Sun Pharmaceutical declined about 1%. Wockhardt was the biggest gainer this week, rising by over 10%. Shares of the company rose after the US Food and Drug Administration formally accepted a new drug application for Wockhardt's novel antibiotic drug Zaynich. This is the first time a new drug application for a new chemical entity from an Indian pharmaceutical company was filed and accepted by the US drug regulator.

TOP HEADLINES

* Lupin receives tentative approval from US FDA for Siponimod tablets
* Cipla completes acquisition of 100% stake in Inzpera Healthsciences
* Lupin, Valorum Biologics ink licensing pact for biosimilar Armlupeg in US
* Zydus Life gets establishment inspection report from US FDA for Jarod unit
* US FDA issues no observation to Granules India's US-based step-down arm
* IPO Alert: Corona Remedies sets price band at INR 1,008-INR 1,062 per share
* India Ratings assigns 'AA' rtg to Cohance Life's INR 6.85-bln loan facilities
* IPO Alert: Corona Remedies issue to open Monday, close Dec 10; cuts OFS size
* Cipla launches Stempeutics' stem cell therapy for knee osteoarthritis
* Cohance Life board OKs investing up to $10 mln in US arm NJ Bio for capex
* Sun Pharma arm to invest INR 30 bln to set up formulations mfg unit in MP
* HC allows Dr Reddy's, OneSource Pharma to export semaglutide to some nations
* Biocon arm settles with Amgen Inc, to sell Denosumab in several mkts from Tue
* LIC acquires 16.40 million shares of Cipla via market purchase
* US FDA accepts Wockhardt's new drug application for antibiotic Zaynich
* L&T Tech to develop AI-powered platform for respiratory diagnostics ops
* US FDA issues no observations to Glenmark unit in Chhatrapati Sambhajinagar
* Sun Pharma launches Ilumya drug for moderate to severe plaque psoriasis
* Lupin gets US FDA approval for Armlupeg injection
* Drug licences of MedPlus Health arm's 2 stores suspended for 2 days
* Neuland Lab board OKs INR 1.89 bln capex for relocating Hyderabad R&D center
* IPO Alert: Sudeep Pharma ends nearly 31% higher after listing at 23% premium

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 Eshitva Prakash

Edited by Saji George Titus

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