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The outlook on stocks of major pharmaceutical stocks is positive for the coming week mainly on account of January sales being higher compared with a year ago. The pharmaceutical industry recorded a 13.7% year-on-year growth in sales during January. The stocks were subdued over the past couple of months in anticipation of a "bad" National Pharmaceuticals Pricing Policy. The policy has been deferred, and is highly unlikely to be enforced this month. If the policy does not come into effect in March as well, the companies' quarterly or annual results are not going to be affected. Drug purchases are expected to go up with the advent of the summer season in which cases of asthma and other air-pollution related diseases rise. Drug sales are also seen up due to the Kumbh Mela at Allahabad, the world's largest religious congregation, where millions of visitors are prone to sickness due to hygiene issues. Stocks of GlaxoSmithKline Pharmaceuticals Ltd will be eyed as the company is scheduled to detail its Oct-Dec earnings on Feb 19. Stocks of Ranbaxy Laboratories are seen weak.
