Pharma Stocks Outlook for the week – 09 to 13.03.2015
( www.rupeedesk.in )
Stocks
of major pharmaceutical companies are seen trading with a positive bias in the
upcoming week due to the momentum generated over the past few days, and a phase
of correction is likely only in the following week.
Pharma
stocks look positive during the week. Ranbaxy (Laboratories) and Sun Pharma
(Sun
Pharmaceuticals)
will be the key stocks to watch out for. A minor level of correction could be
seen
in these two over the first two days, but the week looks positive.
The
counters of both Ranbaxy Laboratories, as well as Sun Pharmaceuticals, hit
record highs
during
last week. Stocks of Sun Pharma have rallied by over 20% in the last six
trading sessions alone. Sun Pharma's decision to buy GlaxoSmithKline's opiates
business in Australia will bear fruit following the first couple of days of
minor drops.
Inflows
from foreign institutional investors are likely to start pouring in into the
domestic
pharmaceutical
sector, with downgrades being seen in China, which would keep the counters,
spirited
in the short term.
The
impact of a lacklustre Union Budget would continue to show in the defensive
pharmaceutical
sector through the coming week. The CNX Pharma Index, which outperformed the
Nifty backed by Sun Pharma and Ranbaxy, is seen trading in the green during the
coming week as well.
