More Stories

Informist, Friday, Jun. 12, 2026

MUMBAI – The Nifty Pharma index is expected to move in a range next week, according to technical analysts. The war in West Asia appears to be headed towards a conclusion, which could result in an unwinding of defensive bets placed on stocks in the sector. Risk-on sentiment is likely to push investors to lap up domestic-facing companies and names that have shown sales resilience while weakness in the US business will limit investor enthusiasm towards export-focused companies, analysts said.

Strong Indian pharmaceutical market growth in May has fuelled further investor optimism towards the sector, analysts said. "Growth has been quite strong in May... cardiovascular therapy continues to perform very well and the oncology segment has been showing strength for 8-10 months," an analyst at a domestic brokerage said. Some analysts had previously said that even without the defensive bets, the sector's sales growth was enough to justify bullish bets. "Domestic-facing companies will likely perform better (than exporters) in the June quarter," an analyst at a domestic brokerage said. "I think there will be an impact of 100-150 basis points on profit margins of export-facing companies in the June quarter," he added.

The revenue from the domestic pharmaceutical market rose 12.1% on year to INR 228 billion in May. This growth was primarily led by price hikes, but volume growth remained modest at 1.7% on year, according to IQVIA data. Sales of chronic therapies rose nearly 15% on year in May, down from almost 16% in April but up from 10% growth in May last year. Acute therapies, which constitute more than half of total Indian pharmaceutical market sales, had flat sequential growth of around 10%, but an improved year-on-year performance. Glucagon-like peptide-1 drugs accounted for 1% of Indian pharmaceutical market sales in May. "The GLP-1 category's sales picking up so quickly is a testament to the weight loss segment's potential," another analyst said. 

On the technical front, "following a sharp upward move post consolidation breakout, the Nifty Pharma index has entered a short-term congestion phase having support around 23750 (points) and resistance around 25000 levels," Vipin Kumaar, assistant vice-president at Globe Capital Markets, said. Going ahead, the index could spend some time in consolidation before continuing its prevailing uptrend, he said. Any dip towards the 23800-23750 zone should be taken as a fresh buying opportunity in select pharmaceutical stocks, the analyst added. For next week, Kumaar sees the index facing resistance at 24800–25000 points. The support is placed at 23800–23750 points.

The Nifty Pharma index rose 0.5% in the week to end at 24380.05 points. Laurus Labs, IPCA Laboratories, and Piramal Pharma were the worst hit, declining 2-4% on week. Ajanta Pharma, JB Chemicals & Pharmaceuticals, and Torrent Pharmaceuticals rose 3-5% and were the best performing stocks of the week. 

TOP HEADLINES

* Tata 1mg plans to end FY27 with 600-700 stores
* Biocon CTO says co using AI in early-stage drug discoveries, demand forecast
* US FDA classifies Cipla's Goa mfg unit as 'voluntary action indicated'
* Pharma secy says Cabinet approval for Biopharma SHAKTI likely in 3 mos
* Glenmark Pharma arm Glenmark Specialty launches Winlevi cream across Europe
* Govt tweaking pharma regulations to keep pace with innovation - Pharma secy
* PRESS: Wockhardt completes Phase-I US trial of antibiotic injection WCK 6777
* Concord Biotech gets US FDA approval for Tofacitinib tablets
* Anupam Rasayan to make open offer after 43.3% stake buy in Bliss GVS Pharma
* Bain Capital sells 1.9% in Emcure Pharma in INR-6.1-bln NSE block deal
* Ajanta Pharma promoter sells 3.45 mln shares, cuts stake by 2.76%
* SC upholds SAT order clearing Biocon MD Tambe of insider trading charges
* India pharma mkt grows 11% in May, chronic drug demand up amid West Asia war
* Lilly's oral diabetes drug outperforms semaglutide in Phase 3 study
* ANALYSIS:Pharma, healthcare cos PAT dn for 1st time in 13 qtrs on weak US ops
* Lupin, Laboratorios ERN to launch Luforbec drug in Spain
* Eli Lilly's Mounjaro retains top spot in GLP-1 drug sales May - Pharmatrac
* PRESS: Govt scheme to support bulk drugs manufacturing, R&D in works

Following are the resistance and support levels for key pharmaceutical stocks for next week as per calculations based on their prices on the National Stock Exchange:

End

Reported by Eshitva Prakash

Edited by Rajeev Pai

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. 2026. All rights reserved.