Pharma stocks could pick up pace in the coming days
Mumbai: After some reversal in the downward trend in Pharma stocks in the last week, companies in the sector will be in focus in the coming days. Analysts reiterated their positive stance on pharma stocks in the near term citing an encouraging outlook from the US Food and Drug Administration (FDA). They said it could provide the necessary momentum for the sector.
“I feel there is a high probability that pharma stocks have bottomed out at least in the near term. We may see gradual action in pharma stocks going ahead, based on USFDA news flows,” said Anshul Saigal, head, portfolio management services, Kotak Mahindra AMC.
In the past week Cadila Healthcare has risen up to 18.8% after successful resolution of FDA observations on its formulation facility at Moraiya. The up move also rubbed off on other pharma stocks with big US exposures such as Sun Pharma, Glenmark Pharma and Divis Labs which closed up to 3.8% higher on Monday.
Analysts expect Lupin to gain in the coming days following approvals for generics of Avlox tablets, and Hycodan oral solution last week. The stock is also perched at a crucial support level, said analysts. “Lupin may continue it’s up move to Rs 1550 if it is able to surpass its current support levels around Rs 1400. The stock has usually shown an uptrend beyond these levels,” said Chandan Taparia, Vice President, Analyst - Derivatives at Motilal Oswal Securities.
“I feel there is a high probability that pharma stocks have bottomed out at least in the near term. We may see gradual action in pharma stocks going ahead, based on USFDA news flows,” said Anshul Saigal, head, portfolio management services, Kotak Mahindra AMC.
In the past week Cadila Healthcare has risen up to 18.8% after successful resolution of FDA observations on its formulation facility at Moraiya. The up move also rubbed off on other pharma stocks with big US exposures such as Sun Pharma, Glenmark Pharma and Divis Labs which closed up to 3.8% higher on Monday.
Analysts expect Lupin to gain in the coming days following approvals for generics of Avlox tablets, and Hycodan oral solution last week. The stock is also perched at a crucial support level, said analysts. “Lupin may continue it’s up move to Rs 1550 if it is able to surpass its current support levels around Rs 1400. The stock has usually shown an uptrend beyond these levels,” said Chandan Taparia, Vice President, Analyst - Derivatives at Motilal Oswal Securities.
