GOLDEN RULES FOR TRADING

Pharma Stocks Outlook for the week – 08 to 12.06.2015 (Seen negative on weak earnings)

Pharma Stocks Outlook for the week – 08 to 12.06.2015
(Seen negative on weak earnings)

Following weak results for the quarter ended March; shares of most pharmaceutical companies are seen trading down next week, with those of Sun Pharmaceutical Industries Ltd witnessing the highest loss of investor confidence among the blue-chip pharmaceutical stocks.

The results of drug companies were weak during Q4 (Jan-Mar), and inherently the stocks of these companies are expected to trade negatively for a while now.

For Q4FY2015 (Jan-Mar), Sun Pharma reported an abysmal performance mainly due to integration of Ranbaxy Laboratories and the US FDA issues at the Halol facility which caused the supply constraints in key markets.

Next week mid-cap pharmaceutical stocks such as Glenmark Pharmaceuticals Ltd, Wockhardt Ltd, GlaxoSmithKline Pharma Ltd and Cadila Healthcare Ltd are expected to be worse-off than their blue-chip counterparts. Due to the weakness in the broader market, investors are expected to dump the mid-cap stocks due to their weak valuations.