Pharma Stocks
Outlook for the week – 20 to 24.07.2015
(Expected to trade positive,
Dr.Reddy's, Sun Pharma in focus)
( www.rupeedesk.in )
Stocks of major pharmaceutical
companies are seen trading firm, with blue-chip stocks such as those
of Sun Pharmaceutical Industries
Ltd and Dr Reddy's Laboratories Ltd outperforming their peers.
Dr. Reddy's is seen in focus amid
prospects of a rerating of the company's Srikakulam plant, which
makes active pharmaceutical
ingredients, by the US Food and Drug Administration. Given the
general timelines for reverting,
we expect some clarity on the Srikakulam plant, if the plant is
cleared from the compliance
issues, we expect the stock to trade at higher multiples.
Reports of Sun Pharmaceutical
rationalising the operations of Ranbaxy Laboratories and
expectations of progress in
resolving US FDA issues at some units are seen keeping the company's
shares in focus next week.
Pharmaceutical sector is seen
positive going ahead now because some sideways-to-negative action is
expected in the Nifty. Larger
stocks like Sun Pharma and Dr Reddy's are seen doing better than
others next week.
