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Informist, Friday, Jun. 19, 2026

MUMBAI – The Nifty Pharma sectoral index is expected to move in a range next week while some stock-specific movements may sway the index in either direction. Last week, pharmaceutical stocks saw some selling pressure as traders started to unwind defensive bets on expectations of a peace deal between the US and Iran. While an interim deal was signed between the two sides this week, Israel's new strikes against Lebanon and the cancellation of talks in Switzerland could pause this unwinding as some investors think resumption of hostilities in West Asia is still on the cards, analysts said.

While pharmaceutical companies are also affected by the war in West Asia, their exposure is limited as compared to that of companies in other sectors. This prompted defensive purchases of pharmaceutical stocks during the war in West Asia. Some analysts said the rationale for buying pharmaceutical stocks was not just to reduce holdings exposed to crude oil, but also because these stocks are fundamentally sound. The revenue from the domestic pharmaceutical market rose 12.1% on year to INR 228 billion in May, primarily led by price hikes.

Amid pharmaceutical stocks, Glenmark Pharmaceuticals, Alembic Pharmaceuticals, and Dr. Reddy's Laboratories could see more pain in the week ahead. Kotak Securities expects Glenmark Pharma to face the highest impact of the government's order banning over-the-counter sales of syrups, followed by Alembic Pharma and Dr. Reddy's. The cough and cold liquids market in India is worth INR 57 billion, Kotak Securities said, citing data from IQVIA. This accounts for 2.2% of overall sales in the Indian pharmaceutical market.

Shares of Jubilant Pharmova may fall further after lines 1 and 2 of the company's Spokane, Washington, contract manufacturing unit received eight observations from the US Food and Drug Administration. This compounds existing compliance issues, as the Montreal, Quebec, unit's previous "official action indicated" classification has already caused supply shortages for the high-margin Radiopharma business, Nuvama Wealth Management said. Spokane's lines 1 and 2 contribute a fifth of Jubilant's earnings before interest, depreciation, and amortisation and hence, sustained issues at Spokane remain a risk to returns. Nuvama has cut its estimate on the company's net profit for the financial year 2026-27 (Apr-Mar) by 2% and lowered the valuation multiple for its contract manufacturing business. It has downgraded the stock to "reduce" and slashed its target price over 18% to INR 930.

Meanwhile, shares of Aurobindo Pharma may rise more after Friday's rally following its wholly-owned subsidiary, Aurobindo Pharma USA Inc., receiving US Federal Trade Commission approval to acquire Lannet Co. for $250 million. The approval came with a condition for Aurobindo Pharma to divest four generic pharmaceutical products to Quagen Pharmaceuticals.

This week, the Nifty Pharma index closed slightly higher at 24460.30 points. The Nifty Pharma index has been moving in a range well above its breakout level of 23800 points. "Going ahead, we reiterate our short-term sideways view with a buy-on-dip trading approach in pharma space as long as the index remains above 23800 spot levels on a closing basis," Vipin Kumaar, assistant vice-president at Globe Capital Markets, said. He sees the index finding support at 23800 points and expects it to meet resistance at 25000 points next week.

TOP HEADLINES

* Cohance Life promoters create indirect encumbrance on 57.49% stake
* Aurobindo Pharma's US arm gets conditional OK for $250-mln Lannett buy plan
* US FDA issues 8 observations to Jubilant Pharmova arm's mfg facility in US
* Anthem Biosciences promoter sells 3% via block deal on NSE for INR 12.75 bln
* Demand-supply mismatch in Semaglutide mkt to correct in 2-6 months - Experts
* Glenmark Pharma to face most impact of ban on OTC syrups, says Kotak Sec
* Cohance Lifesciences whole-time director, CFO Himanshu Agarwal resigns
* Lupin launches Azilsartan Medoxomil tablets in US
* Glenmark Pharma's US arm launches Methylene Blue injection
* Cipla to focus on respiratory therapies in US, Africa in FY27
* Zydus Life completes tender offer via arm to acquire Assertio Holdings
* Govt makes prescription mandatory for purchase of 'syrups'
* Report says Indian pharma market to reach $120 bln-$130 bln by 2030
* Sun Pharma says independent director Gautam Doshi's arrest not related to co
* Dr Reddy's, subsidiaries launch Bosutinib tablets 400 mg in US
* US FDA tags Aurobindo Pharma arm's Telangana unit 'official action indicated'
* Source says Lupin discusses price hike internally, yet to approach govt
* Brazilian regulator completes inspection of Concord Biotech's API unit

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

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