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Stocks of major pharmaceutical companies are seen marginally higher on Monday ahead of the Reserve Bank of India's mid-quarter policy review on March 19. As investors will be cautious ahead of RBI's policy review, they will look for safe-havens such as pharmaceutical and fast moving consumer goods stocks. For the rest of the week, pharmaceutical stocks are likely to take direction from the central bank's policy statement. We expect the RBI to cut repo rate by 25 basis points, out of which three are betting on a 25-bps cut in Cash Reserve Ratio as well. A continued rise in Consumer Price Index-based inflation and a record high current account deficit were cited as the biggest deterrents for a bold policy action. Stocks of Ranbaxy Laboratories, the biggest gainers this week, are seen continuing the positive trend. Wockhardt stocks on negative view for next week.
