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Informist, Friday, Jul. 3, 2026

 

MUMBAI – Shares of pharmaceutical companies are expected to maintain their winning streak next week. Analysts said the Nifty Pharma index, after overcoming a key multi-quarter resistance hurdle, has advanced in successive weeks, signalling strength on technical charts. Additionally, investors will now turn their attention towards June quarter earnings, which are expected to be strong for domestic-focussed companies in a seasonally strong quarter, while US business may see a continued slowdown. Moreover, since other sectors are more exposed to cost fluctuations in crude-linked derivatives, investors have found pharmaceuticals companies with their inelastic demand as safer bets.

 

"This sectoral rotation (towards pharma stocks) will likely continue going forward," an analyst at a domestic brokerage said. "(This) is a trend that was set when the war (in West Asia) started and was driven mostly by value-buying. Now, I think, investors realise that these stocks have decent growth prospects... and sales growth will likely recover soon," he said. How companies such as Dr. Reddy's and Cipla, who have faced steep US sales decline after the loss of generic Revlimid sales exclusivity, intend to improve their US business will be a key commentary to watch, the analyst said. 

 

All US volume restrictions on the high-margin generic were lifted in January, which resulted in a sharp drop in US sales of these companies. In fact, Dr. Reddy's took a hit of INR 4.53 billion on its profit in the trailing quarter due to a shelf stock adjustment claim arising from lower prices of generic Revlimid in the US market. Pharmaceutical companies incur a shelf stock adjustment cost when they have to pay distributors for a fall in on-hand inventory prices to improve volumes or protect themselves against competing suppliers. 

 

"Following a two-year-long congestion zone breakout, the Nifty Pharma index is gradually heading towards its initial price target of the 26500 level," said Vipin Kumaar, assitant vice president Research at Globe Capital Market. "We continue to uphold our bullish stance on the (Nifty) Pharma index, as long as it trades above the 24900 spot level on a closing basis, and suggest traders to maintain a 'buy on dips' trading approach," he said. For the next week, the analyst expects the sectoral index to find resistance at 26200–26500 points and find support at 25400–25000 points. 

 

This week, the Nifty Pharma index ended over 3% higher at 25745.15 points. IPCA Laboratories, Laurus Labs, and Gland Pharma ended 6-10% higher. Meanwhile, Wockhardt ended over 1% lower. Divi's Laboratories and Abbott India ended with around 1% gains. Pharma majors Cipla, Dr. Reddy's, and Sun Pharmaceutical Industries closed the week 1-2% higher. 

 

TOP HEADLINES

 

* HC bars Finecure from selling drugs similar to Sun Pharma arm's 'Pantocid'
* ICRA ups rating on Anthem Bioscience's INR-1.75-bln long-term facility to AA
* Emcure Pharma Canada arm buys 100% class E special shrs in step-down arm
* Dr Reddy's to focus on peptides, biosimilars to drive FY27 growth
* US FDA issues one observation to OneSource Specialty's Bengaluru unit
* US FDA tags Ajanta Pharma's Paithan mfg unit as voluntary action indicated
* Aurobindo Pharma completes transfer of domestic branded generic ops to arm
* US FDA tags Lupin's Somerset unit as satisfactory voluntary action indicated
* Glenmark Pharma arm to begin multi-nation phase 3 test of cancer drug
* European Medicines Agency OKs marketing Lupin's NaMuscla for paediatric use
* US FDA issues six observations to Glenmark Pharma's mfg facility in Goa
* JB Chem President, Global Business, Pradeep K Singh retires effective Tue
* Aurobindo Pharma's US arm acquires US-based Lannett Co
* Biocon buys out arm's remaining shareholders by allotting 8.7 mln shrs in co
* CCI rejects plea alleging anti-competitive conduct by drug bodies, pharma cos
* Zydus Life extends deadline to buy Sterling Bio's API ops to Sept 30
* Alkem Lab arm executes first stage of agreement to buy stake in Swiss firm
* Zydus Life, Sunshine Healthcare form JV for pharma manufacturing in Sri Lanka
* Lupin gets US FDA's tentative nod for enzalutamide tablets
* Ipca Lab board OKs merger of Krebs Biochemicals with 7:200 share swap
* Jubilant Pharmova arm gets tentative nod from US FDA for Pantoprazole Sodium
* US FDA issues 7 observations on Dr Reddy's biologics mfg unit in Hyderabad
* US FDA issues 2 observations on Aurobindo Pharma arm's Andhra Pradesh unit
* Eli Lilly launches cancer drug Tanstrive in India, priced at INR 215,000/box

 

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:

 

Company	Price	Week-on-Week Change in %	Resistance	Support
Abbott India	25,895.00	1.20	26,381.70	25,371.70
Alkem Laboratories	5,562.50	2.50	5,699.50	5,425.50
Aurobindo Pharma	1,620.50	4.20	1,677.40	1,539.20
Biocon	426.80	2.60	434.90	414.50
Cipla	1,458.20	1.30	1,479.40	1,441.40
Divi's Laboratories	6,757.00	0.70	6,868.00	6,630.00
Dr Reddy's Laboratories	1,374.10	1.80	1,411.70	1,331.50
Gland Pharma	2,462.30	6.40	2,556.80	2,398.00
GlaxoSmithKline Pharmaceuticals	2,395.50	1.70	2,447.40	2,354.00
Glenmark Pharmaceuticals	2,211.00	2.60	2,272.90	2,154.30
Granules India	833.80	9.10	847.20	819.30
Ipca Laboratories	1,778.90	9.90	1,831.10	1,693.30
Laurus Labs	1,542.30	6.40	1,572.80	1,506.80
Lupin	2,476.00	5.70	2,528.30	2,381.50
Natco Pharma	931.40	3.10	944.20	921.10
Pfizer	4,568.60	2.40	4,662.20	4,413.20
Sanofi India	3,425.00	2.10	3,515.30	3,364.90
Sun Pharmaceutical Industries	1,904.80	2.30	1,954.00	1,847.00
Torrent Pharmaceuticals	4,768.30	5.60	4,846.80	4,640.80
Zydus Lifesciences	1,140.60	3.60	1,168.00	1,090.40
Index	Levels
Nifty Pharma	25745.15	3.10	26130.50	25207.30
Nifty 50	24270.85	0.90	24426.30	24174.70
S&P Bse Sensex	77763.91	0.90	78324.70	77429.60

 

 

End

 

US$1 = INR 95.21

 

Reported by Eshitva Prakash

Edited by Akul Nishant Akhoury

 

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