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Stock of major pharmaceutical companies are likely to gain slightly next week amid choppy trade as investors would begin rolling over positions to the August derivatives contract due to expiry of the current month series Thursday. As trade remains volatile during expiry, investors usually bet on defensive stocks such as pharmaceutical and fast moving consumer goods. Otherwise, investors are not seen upbeat on pharmaceutical stocks with the sector's growth retracting to 4.4% in June from 9% in Apr-May.
Pharma growth during June retracted to 4.4% from 9% in Apr-May 2013, primarily reflecting the slowdown from inventory adjustment in supply chain post notification of ceiling prices in May 2013. We see through the impact of price control on volumes through August, while September would again see a pick-up in volumes. Also with Apr-Jun earnings round the corner, the market would also keep in mind the likely numbers from the pharmaceutical companies. We expect pharma universe to sustain its growth trajectory (excluding Ranbaxy), led by niche launches in the US market, continued momentum in emerging markets and positive impact of rupee depreciation.
Stock of major pharmaceutical companies are likely to gain slightly next week amid choppy trade as investors would begin rolling over positions to the August derivatives contract due to expiry of the current month series Thursday. As trade remains volatile during expiry, investors usually bet on defensive stocks such as pharmaceutical and fast moving consumer goods. Otherwise, investors are not seen upbeat on pharmaceutical stocks with the sector's growth retracting to 4.4% in June from 9% in Apr-May.
Pharma growth during June retracted to 4.4% from 9% in Apr-May 2013, primarily reflecting the slowdown from inventory adjustment in supply chain post notification of ceiling prices in May 2013. We see through the impact of price control on volumes through August, while September would again see a pick-up in volumes. Also with Apr-Jun earnings round the corner, the market would also keep in mind the likely numbers from the pharmaceutical companies. We expect pharma universe to sustain its growth trajectory (excluding Ranbaxy), led by niche launches in the US market, continued momentum in emerging markets and positive impact of rupee depreciation.
