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Informist, Friday, Jul. 10, 2026

 

MUMBAI – Investors are likely to continue booking profits in pharmaceutical stocks following a breakneck rally in the sector over the past two months, technical analysts said. Profit booking was triggered on Friday after Dr. Reddy's Laboratories halted commercial supplies of its semaglutide injections until late October to early November. While other companies producing glucagon-like-peptide class of drugs may gain market share from Dr. Reddy's in India and Canada during its absence, demand has shifted towards innovator brands, a key negative for generic drugmakers.

 

This week, the Nifty Pharma index ended 0.3% lower at 25674.10, in line with the benchmark indices. Over the last three months, the index has risen nearly 16%. During the week, JB Chemicals & Pharmaceuticals, Glenmark Pharmaceuticals, and Abbott India rose 3–5%, while Aurobindo Pharma, Wockhardt, and Dr. Reddy's Laboratories closed 3-9% lower. Investors will look to pharmaceutical companies' June-quarter earnings before taking risky bets. Brokerages expect solid domestic sales growth, but yet another poor quarter in the US may drag down profit margins for large-cap players. 

Dr. Reddy's stock may face volatility in the near term, according to the options chain of the stock. Friday, traders sold both put and call contracts across strike prices, with open interest in call contracts of INR 1,400 rising 12% and premiums falling over 30%. The open interest on put contracts of INR 1,200 declined nearly 13% and premiums on these contracts shrank 22%. Shares of the company declined almost 8% in the cash market in two days. Shares of Onesource Specialty Pharma, the fill-and-finish partner of Dr. Reddy's semaglutide injections, and those of Torrent Pharmaceuticals, which recalled select batches of Semalix injections made by Dr. Reddy's, can also come under pressure. However, a large fall due to semaglutide supply disruption is unlikely at current levels of all three companies, considering that brokerages were already factoring in a slow ramp-up in semaglutide production for Dr. Reddy's.

On the flip side, shares of Dr. Reddy's competitors rose as investors rotated their bets towards Sun Pharmaceutical Industries, Zydus Lifesciences, and Lupin, which have expressed their intent to launch their own versions of the weight-loss drug in Canada over the next 6–7 months. However, these stocks will likely see limited upside, as consumers have shown greater interest in innovator drugs than in generics. "The longer-term growth narrative (of generic semaglutide) is increasingly shifting back toward innovator brands," Sheetal Sapale, vice-president, commercial, Pharmatrac, said. While generic semaglutide unit sales growth slowed sharply to 4.4% in June from 15.3% in May, innovator brands driven by four semaglutide products – Wegovy, Ozempic, Poviztra by Emcure, and Abbott's Extensior – maintained a steady growth trajectory, according to data from Pharmatrac. 

 

"The Nifty Pharma index scaled to the 26000 level in a short time span of just two months following a two-year-long congestion breakout above the 23,800 level," Vipin Kumar, assistant vice president of equity research at Globe Capital Market, said. "The possibility of some profit-taking or a halt cannot be ruled out at the current juncture. Hence, we suggest that traders adopt a buy-on-dips trading approach, focusing on selective buying within this space," he said. The analyst sees the Nifty Pharma index finding support at the 25000 level and facing resistance at 26000–26200.

 

TOP HEADLINES

 

* Govt tightens norms for high-alcohol medicinal formulations to curb misuse
* SPOTLIGHT: Earnings downgrades unlikely for Dr Reddy's on semaglutide issue
* Max Healthcare targets 10,000-bed network by FY30 with INR 66.7-bln capex
* Dr Reddy's sees semaglutide supplies resuming by late Oct, early Nov
* Torrent Pharma recalls select Semalix injections after Dr Reddy's notice
* OneSource Specialty says no impact on ops from Dr Reddy's semaglutide issue
* US FDA ends inspection at Piramal Pharma's US manufacturing plant
* Dr Reddy's says Semaglutide supply to see delay, issue found in some batches
* PRESS: GLP-1 drug innovators sales grow faster than generics
* Sun Pharma arm seeks bar on Intas Pharma selling similar named cancer drug
* Natco Pharma to invest INR 14 bln in S Africa arm to up Adcock Ingram stake
* Semaglutide mkt expansion plateaus but innovator brands growing - Pharmatrac
* Sun Pharma to scale up new drugs in US, focus on innovative medicines in FY27
* Torrent Pharma sets Jul 17 as record date for merger of JB Chemicals
* Honasa Consumer gets govt nod to incorporate wholly-owned arm Honasa Health
* Chemists seek higher margins, brand substitution at meeting with government
* NCLT Ahmedabad approves JB Chemicals' merger with Torrent Pharma
* Granules India gets sole first-to-file status for sodium oxybate drug

 

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	27,165.00	4.90	27,745.00	26,375.00
Alkem Laboratories	5,669.50	1.90	5,769.80	5,584.80
Aurobindo Pharma	1,564.70	(-)3.40	1,599.40	1,527.00
Biocon	418.50	(-)1.90	429.90	398.30
Cipla	1,439.40	(-)1.30	1,462.50	1,423.50
Divi's Laboratories	6,836.00	1.20	6,924.00	6,731.00
Dr Reddy's Laboratories	1,244.30	(-)9.50	1,269.20	1,209.60
Gland Pharma	2,479.40	0.70	2,561.70	2,409.90
GlaxoSmithKline Pharmaceuticals	2,438.20	1.80	2,468.80	2,408.20
Glenmark Pharmaceuticals	2,282.90	3.30	2,335.10	2,220.90
Granules India	889.85	6.70	913.30	866.80
Ipca Laboratories	1,787.90	0.50	1,834.50	1,717.70
Laurus Labs	1,537.80	(-)0.30	1,573.90	1,486.10
Lupin	2,496.30	0.80	2,539.80	2,460.20
Natco Pharma	984.10	5.70	1,013.30	933.40
Pfizer	4,731.40	3.60	4,840.30	4,546.50
Sanofi India	3,401.90	(-)0.70	3,484.60	3,298.60
Sun Pharmaceutical Industries	1,935.50	1.60	1,966.00	1,911.40
Torrent Pharmaceuticals	4,901.50	2.80	4,994.60	4,732.20
Zydus Lifesciences	1,150.80	0.90	1,173.50	1,133.70
Index	Levels
Nifty Pharma	25674.10	(-)0.30	25967.80	25297.40
Nifty 50	24206.90	(-)0.30	24293.30	24077.10
S&P BSE Sensex	77569.39	(-)0.30	77832.40	77189.10

 

End

 

Reported by Eshitva Prakash

Edited by Saji George Titus

 

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