Pharma Stocks Outlook
Seen in range; view on contract mfg business positive
This story was originally published at 23:47 IST on 28 August 2026
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NEW DELHI – Shares of pharmaceutical companies are likely to remain range-bound next week as strong fundamentals and defensive buying support the sector while profit-taking and weak broader market conditions could limit a further rise, according to analysts.
"The pharma sector has emerged as a clear outperformer, both on a year-to-date basis, with gains of more than 18%, and during the week, when it advanced around 2.4% and outperformed the benchmark indices," Sugandha Sachdeva, founder of research firm SS WealthStreet, said. Sachdeva said investor interest has rotated towards defensive sectors as cyclical pockets remain vulnerable to geopolitical uncertainty, higher interest rates, and persistent foreign investor outflows.
Pharmaceutical companies continue to benefit from resilient earnings and robust exports while concerns about potential US tariffs on Indian generic drug exports have so far had limited impact on investor sentiment, she added. The recent quarterly results also showed healthy revenue growth and profitability across several leading companies, reinforcing confidence in the growth outlook for the sector.
Meanwhile, the fundamental outlook remains positive, particularly for contract development and manufacturing companies. "If you look at the order from CDMO (contract development and manufacturing organisation), that is doing well. The India formulation business... is looking good so there the trend is positive as we speak," Sunny Agrawal, head of the fundamental equity research team at SBI Securities, said.
However, Jatin Gedia, vice-president and technical research analyst at Teji Mandi, expects the sector to remain under pressure next week. "The rally that was there from 24000 to 24300 points has fizzled out," he said, citing higher crude oil prices, weak broader market conditions, and poor market internals. He expects the correction to continue, with resistance at 24400 points and support at 23800 points. This week, the Nifty Pharma index ended 2.4% higher at 26991.85 points. The index outperformed the broader market in the week, though mixed technical signals could keep the sector volatile in the near term.
Agrawal sees healthcare and diagnostics performing well, particularly with the monsoon supporting the second-quarter outlook. He said Metropolis Healthcare Ltd., Vijaya Diagnostic Centre Ltd., and Suraksha Diagnostic Ltd. look well-placed. The contract development and manufacturing organisation business is also likely to continue doing well, he said.
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* Cipla's Madhya Pradesh manufacturing unit gets 7 observations from US FDA
* Dr Reddy's arm Aurigene Pharma in long-term mfg pact with global drugmaker
* Natco Pharma arms to invest additional $14 mln in US-based eGenesis
* Biocon arm gets Japan health ministry nod to market pegfilgrastim biosimilar
* US FDA issues four observations to Aurobindo Pharma's US arm Lannett Co
* Jubilant Pharmova's US arm gets US FDA approval for isolator-based pdt line
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* Caplin Point arm gets US FDA Form 483, 10 observations for Tamil Nadu unit
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* Aurobindo Pharma arm gets 1 observation from US FDA for its Telangana 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:
| Company | Price | Week-on-Week Change in % |
Resistance | Support |
| Abbott India | 26,175.00 | (-)0.20 | 26,971.70 | 25,721.70 |
| Alkem Laboratories | 5,355.00 | (-)0.80 | 5,449.70 | 5,268.70 |
| Aurobindo Pharma | 1,645.30 | 1.50 | 1,676.60 | 1,604.40 |
| Biocon | 411.10 | (-)1.10 | 421.90 | 404.60 |
| Cipla | 1,423.50 | (-)0.60 | 1,433.60 | 1,404.00 |
| Divi's Laboratories | 9,239.00 | 7.50 | 9,386.00 | 9,007.00 |
| Dr Reddy's Laboratories | 1,178.00 | 0.30 | 1,193.10 | 1,164.90 |
| Gland Pharma | 2,888.00 | 2.40 | 2,927.90 | 2,832.10 |
| GlaxoSmithKline Pharmaceuticals | 3,106.40 | 7.00 | 3,161.30 | 3,025.30 |
| Glenmark Pharmaceuticals | 2,515.00 | 8.50 | 2,600.70 | 2,388.90 |
| Granules India | 836.65 | (-)2.50 | 849.60 | 827.10 |
| Ipca Laboratories | 1,950.30 | 2.10 | 2,000.00 | 1,905.00 |
| Laurus Labs | 1,938.50 | 7.60 | 1,957.40 | 1,900.60 |
| Lupin | 2,171.50 | (-)1.40 | 2,194.90 | 2,141.30 |
| Natco Pharma | 853.80 | (-)3.20 | 869.40 | 837.10 |
| Pfizer | 4,703.80 | (-)5.50 | 4,812.40 | 4,635.80 |
| Sanofi India | 3,181.60 | (-)5.10 | 3,219.10 | 3,141.30 |
| Sun Pharmaceutical Industries | 1,920.00 | 0.90 | 1,945.50 | 1,891.10 |
| Torrent Pharmaceuticals | 5,050.00 | 3.10 | 5,105.30 | 4,939.30 |
| Zydus Lifesciences | 1,191.00 | 6.30 | 1,215.10 | 1,158.50 |
| Index | Level | |||
| Nifty Pharma | 26991.85 | 2.40 | 27153.00 | 26705.90 |
| Nifty 50 | 24175.65 | (-)0.30 | 24258.40 | 24035.50 |
| S&P BSE Sensex | 77264.51 | (-)0.40 | 77573.30 | 76833.80 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Gunjan Rajput
Edited by Rajeev Pai
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