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Informist, Friday, Aug. 21, 2026

 

MUMBAI – Shares of pharmaceutical companies are expected to be in a range as profit-booking in major stocks continues. Several stocks in the sector, particularly of contract development and manufacturers, had risen sharply after June quarter results. However, as the war between Iran and the US continues to muddy investor sentiment, many have exited long positions on these stocks, while others held onto them as they expect inelastic demand for drugs to continue to add value to their investments. 

 

"I think US operations will recover gradually for most companies... (as) new launches will be the next growth lever," an analyst at a domestic brokerage said. "Until then, domestic performance itself does not look weak, and maybe it can be the real performer until something else comes up," he said. Domestic-focussed companies reported strong growth in the June quarter, driven by growth in both branded and generics segments. Meanwhile, price erosion in drugs across the generics portfolio weighed heavily on US sales. US-facing companies are betting on multiple drugs across biosimilars, generics, and branded products as key growth drivers in the future. Whether these drugs find the same traction as heavy-hitters such as generic revlimid, tolvaptan, and mirabegron, to name a few, remains to be seen.     

 

US President Donald Trump's threat in July to impose heavy tariffs on imported generics tempered market sentiment, adding another item in a growing list of US operations woes for pharma companies. While panic due to planned US tariffs led to selling pressure, many analysts said this proved to be a good buying opportunity at cheaper valuations. In fact, brokerages like Kotak Securitie have said the scope of the tariffs makes it nigh impossible to be implemented. The brokerage earlier said these threats are primarily intended to encourage pharmaceutical manufacturing within the US rather than serve as a final policy blueprint.

 

This week, the Nifty Pharma index ended 0.3% lower at 26359.75 points. Investors chose between winners and losers of the CDMO trade, with IPCA Laboratories, Piramal Pharma, and Divi's Laboratories ending higher, but Wockhardt, Abbott India, and Gland Pharma declining sharply. 

 

"The Nifty Pharma index is trading in a higher high and higher low structure following a multi-year congestion zone breakout above 23800 points," said Vipin Kumar, assistant vice-president of research at Globe Capital Market. Following a sharp rally after this breakout, the index has been consolidating over the past three weeks and, going ahead, Kumar expects further consolidation in the 25400–26800 point range before the index resumes its uptrend.

 

TOP HEADLINES

 

* Glenmark Pharma US arm launches Calcium Gluconate Injection USP
* IPO Alert: Symbiotec Pharmalab sets price band at INR 938-INR 988 per share
* Mankind Pharma signs pact with China co to sell 2 insulin drugs in India
* HC orders cancelling Razenta Pharma's Daplogin trademark on Dr Reddy's plea
* Lupin arm inks pact with US co to commercialise YUVEZZI in 5 European mkts
* Glenmark Pharma gets US FDA nod for distribution of Fluticasone nasal spray
* Strides Pharma Bengaluru unit gets voluntary action indicated from US FDA
* CORRECTS: NCLT allows Cipla, arm to skip shareholders' meet to OK merger
* Delhi HC upholds bar on Noviets Pharma using 'Noviets' on Novartis plea
* Acutaas Chemicals to get 25% as incentive for INR 1.2 bln invest under ECMS
* Shilpa Medicare recalled 4 pemetrexed injection batches in US on Jul 29
* HC bars Zydus Life from launching drug with Novartis-patent Dabrafenib
* Biocon's US arm gets US FDA supplemental nod for Yesintek auto-injectors
* US FDA tags Aurobindo Pharma arm's US unit as 'voluntary action indicated'
* Sun Pharma gets favourable ruling from US court in Lipitor antitrust case
* US FDA tags Dr Reddy's UK mfg unit as 'voluntary action indicated'
* US FDA issues four observations to Dr Reddy's formulations unit in Hyderabad
* Earnings Review: Natco Pharma Q1 profit down 57% on sharp revenue decline
* Neuland Lab's Telangana unit gets Form 483 with 1 observation from US FDA
* Rubicon Research Apr-Jun consol PAT rises 96% YoY to INR 848 million
* Analyst Concall: Alkem Lab sees CDMO ops break even FY28, eyes $30 mln sales
* Analyst Concall: Ipca Lab raises FY27 revenue growth guidance to 14-16%

 

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	26,230.00	(-)3.10	26,560.00	25,740.00
Alkem Laboratories	5,400.00	0.60	5,512.00	5,284.00
Aurobindo Pharma	1,621.30	(-)0.10	1,639.10	1,591.10
Biocon	415.55	(-)0.40	419.20	409.20
Cipla	1,432.20	(-)1.20	1,463.10	1,393.10
Divi's Laboratories	8,597.00	1.40	8,675.30	8,466.30
Dr Reddy's Laboratories	1,174.70	(-)2.10	1,189.00	1,166.80
Gland Pharma	2,819.30	(-)5.10	2,915.60	2,743.80
GlaxoSmithKline Pharmaceuticals	2,902.20	7.90	3,033.30	2,814.50
Glenmark Pharmaceuticals	2,317.90	(-)0.00	2,368.80	2,277.60
Granules India	858.15	(-)0.00	876.70	834.30
IPCA Laboratories	1,911.20	10.20	1,940.30	1,874.50
Laurus Labs	1,802.00	0.80	1,855.70	1,763.50
Lupin	2,201.80	(-)1.50	2,231.50	2,172.90
Natco Pharma	882.40	(-)2.30	908.10	866.10
Pfizer	4,978.20	2.10	5,079.40	4,879.40
Sanofi India	3,352.80	3.40	3,406.90	3,282.90
Sun Pharmaceutical Industries	1,902.40	(-)1.40	1,935.50	1,866.30
Torrent Pharmaceuticals	4,896.50	1.30	5,085.20	4,788.20
Zydus Lifesciences	1,120.00	(-)1.30	1,133.70	1,092.50
Index	Levels
Nifty Pharma	26359.75	(-)0.30	26723.50	26011.00
Nifty 50	24252.00	(-)0.50	24324.90	24170.40
S&P BSE Sensex	77540.83	(-)0.60	77850.60	77291.00

 

End

 

Reported by Eshitva Prakash

Edited by Avishek Dutta

 

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