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Stocks of major pharmaceutical companies are seen falling next week along with the broad market, as players will restrain from investing in the wake of Reserve Bank of India's measures announced yesterday to contain volatility in foreign exchange market. In order to contain foreign exchange market volatility, the RBI announced it will auction 220 bln rupees of cash management bills every Monday. The central bank said these bills were aimed at effective liquidity management. This would result in tighter liquidity in the market, which is likely to make investors cautious.
Some pharmaceutical stocks are expected to see pressure due to the Drug (Prices Control) Order, 2013. If more companies show similar trend, the entire sector will come under pressure. Lupin Ltd are expected to bounce back while Ranbaxy Ltd's stocks will see some buying next week. Ranbaxy could not be positively viewed at the current levels.
Stocks of major pharmaceutical companies are seen falling next week along with the broad market, as players will restrain from investing in the wake of Reserve Bank of India's measures announced yesterday to contain volatility in foreign exchange market. In order to contain foreign exchange market volatility, the RBI announced it will auction 220 bln rupees of cash management bills every Monday. The central bank said these bills were aimed at effective liquidity management. This would result in tighter liquidity in the market, which is likely to make investors cautious.
Some pharmaceutical stocks are expected to see pressure due to the Drug (Prices Control) Order, 2013. If more companies show similar trend, the entire sector will come under pressure. Lupin Ltd are expected to bounce back while Ranbaxy Ltd's stocks will see some buying next week. Ranbaxy could not be positively viewed at the current levels.
