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Earnings for the quarter ended September will be key for movement of pharmaceutical shares next week. Ranbaxy Laboratories Ltd will detail its earnings on Tuesday and we have mixed view on the company's Jul-Sep earnings with some expecting the ailing drugmaker to post a net loss, while others expecting a net profit. Jubliant Life Sciences Ltd, which is also likely to detail its Jul-Sep earnings on Tuesday, is seen posting a net loss of 260 mln rupees. With Wockhardt Ltd yesterday posting a 70% fall in its net profit for Jul-Sep, the company's shares may come under pressure next week. Stocks of IPCA Laboratories Ltd are seen up with the company posting a a 3.5% growth in its net profit. Reserve Bank of India's second quarter review of monetary policy 2013-14 (Apr-Mar) policy, which will be announced on Tuesday, is also likely to impact the share market overall. With most market participants expecting a 25 basis point hike in repo rate, the pharmaceutical sector could be seen gaining on defensive buying. However, since the stocks in the sector have already gained in the near past, major defensive buying is unlikely. We expect that although the trend of the pharmaceutical sector is generally seen good, stock of Lupin Ltd may see some correction in the coming week.
Earnings for the quarter ended September will be key for movement of pharmaceutical shares next week. Ranbaxy Laboratories Ltd will detail its earnings on Tuesday and we have mixed view on the company's Jul-Sep earnings with some expecting the ailing drugmaker to post a net loss, while others expecting a net profit. Jubliant Life Sciences Ltd, which is also likely to detail its Jul-Sep earnings on Tuesday, is seen posting a net loss of 260 mln rupees. With Wockhardt Ltd yesterday posting a 70% fall in its net profit for Jul-Sep, the company's shares may come under pressure next week. Stocks of IPCA Laboratories Ltd are seen up with the company posting a a 3.5% growth in its net profit. Reserve Bank of India's second quarter review of monetary policy 2013-14 (Apr-Mar) policy, which will be announced on Tuesday, is also likely to impact the share market overall. With most market participants expecting a 25 basis point hike in repo rate, the pharmaceutical sector could be seen gaining on defensive buying. However, since the stocks in the sector have already gained in the near past, major defensive buying is unlikely. We expect that although the trend of the pharmaceutical sector is generally seen good, stock of Lupin Ltd may see some correction in the coming week.
