Pharma Stocks Outlook for the week – 02 to 06.01.2017
Pharma Stocks Outlook for the week – 02 to 06.01.2017
( www.rupeedesk.in )
The shares of pharmaceutical companies are likely to continue their rebound next week, but investors are likely to remain cautious as they await clarity from the government on cash withdrawal limits. In today's session, the last this year, the Nifty pharma index ended 14% lower owing to regulatory issues, pricing pressure in both the US and India, and the Indian government's ban on fixed dose combination of drugs.
Market participants expect regulatory pressure to continue in the coming year, as the US Food and Drug
Administration, the regulator in one of the world's most lucrative markets, continues its stringent checks. The
Regulatory issues will also be the key issue for India's largest drugmaker, Sun Pharmaceutical Industries, whose facility at Halol, along with Ranbaxy Laboratories' four units, are due for inspection by US FDA.
Four of Ranbaxy's units have been under an import alert for as much as a decade on account of data integrity issues. Sun Pharma acquired Ranbaxy last year. The stock is expected to remain negative in the medium term, but is likely to rise next week and may test the resistance level of 660 rupees. The stock is seen finding support at 610 rupees. The general trend in pharmaceutical stocks is likely to be positive in the coming week, as the Nifty pharma index has fallen over 7%. Also, gains in the broad market are likely to buoy sentiment.
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Pharma Stocks Outlook for the week – 02 to 06.01.2017
( www.rupeedesk.in )
The shares of pharmaceutical companies are likely to continue their rebound next week, but investors are likely to remain cautious as they await clarity from the government on cash withdrawal limits. In today's session, the last this year, the Nifty pharma index ended 14% lower owing to regulatory issues, pricing pressure in both the US and India, and the Indian government's ban on fixed dose combination of drugs.
Market participants expect regulatory pressure to continue in the coming year, as the US Food and Drug
Administration, the regulator in one of the world's most lucrative markets, continues its stringent checks. The
Regulatory issues will also be the key issue for India's largest drugmaker, Sun Pharmaceutical Industries, whose facility at Halol, along with Ranbaxy Laboratories' four units, are due for inspection by US FDA.
Four of Ranbaxy's units have been under an import alert for as much as a decade on account of data integrity issues. Sun Pharma acquired Ranbaxy last year. The stock is expected to remain negative in the medium term, but is likely to rise next week and may test the resistance level of 660 rupees. The stock is seen finding support at 610 rupees. The general trend in pharmaceutical stocks is likely to be positive in the coming week, as the Nifty pharma index has fallen over 7%. Also, gains in the broad market are likely to buoy sentiment.
