Pharma Stocks Outlook for the week – 14 to 18.12.2015
(Rangebound;
bias firm as defensives preferred)
( www.rupeedesk.in )
Shares
of pharmaceutical companies are expected to trade rangebound next
week,
consolidating after the recent fall, with midcaps seen better placed than
largecaps.
With
the US interest rate hike looming, trend in the broader market will remain
subdued,
barring some sentimental upside on Monday due to higher-thanexpected
India's
industrial production growth in October. In this scenario,
defensive
sectors such as pharma and fast moving consumer goods are likely to
see
some positive movement.
The
current market situation is favourable for defensives. Pharma stocks have
corrected
significantly in November, so now we can expect some rebound.
Large
US pending approvals such as Copaxone, Tamiflu and several other
smaller
launches would be the key driver for Natco in the next 2-3 years.
Domestic
formulations business would be driven by strong position in
oncology
supported by momentum in Sovaldi generic sales.