Pharma Stocks Outlook for the week – 09 to 13.01.2017
Pharma Stocks Outlook for the week – 09 to 13.01.2017
( www.rupeedesk.in )
Pharmaceutical stocks are likely to stabilise next week as most of the negative issues around the sector like
regulatory concerns and pricing pressure in the US have been factored in the prices. Some stocks, which are trading
near their support, may even rebound.
Over the last three months, the Nifty Pharma index has corrected by nearly 10%, almost double the quantum of fall
in Nifty 50, as regulatory concerns continued to weigh. Return on pharma stocks may not be much but now the
downside is Limited. Cipla is the preferred pick in the sector over the long term due to its low exposure to the US
market, and growth in the domestic market is expected to be robust in the long term.
The downside in stock of Sun Pharmaceutical Industries, which is India's largest pharmaceutical company and the
world's fifth largest speciality generics player, is expected to be limited after having slumped by nearly 16% in the
last three months. The stock is down by nearly a fifth on year on regulatory concerns surrounding the company's
facility at Halol. On technical charts, Sun Pharmaceutical Industries is expected to rise towards 670 rupees in the
near term.
Wockhardt is likely to rise further after it gained 5.6% yesterday. The company late Thursday said it has received a
European Union good manufacturing for its facility at Ankleshwar. Next week, the stock is likely to face resistance
around 727 rupees.
While the view on the stock over the short term is positive, in the long term, market participants advise investors to
avoid the stock as three of its units--Ankleshwar in Gujarat, and Waluj and Chikalthana in Maharashtra--continue to
be under US Food and Drug Administration's import alert. Over the short term, Aurobindo Pharma is likely to be the
top performer in the pharmaceutical sector.
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Pharma Stocks Outlook for the week – 09 to 13.01.2017
( www.rupeedesk.in )
