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Counters of major pharmaceutical manufacturers are seen moving with a marginal positive bias during the coming week, even as a phase of consolidation is likely. Consolidation is likely in pharma stocks as there is no significant trend prevailing, and the earnings season is over. GSK Pharma's (GlaxoSmithKline Pharmaceuticals Ltd) results are eyed, but they should be in line with expectations. GlaxoSmithKline Pharmaceuticals is scheduled to detail its earnings for Oct-Dec on Tuesday. The company is expected to post a net profit of 1.18 bln rupees, down 15% on year, according to an average of estimates. Net sales for the company are seen at 6.52 bln rupees, down 1% on year. The increasing acceptance of low-cost drugs by Indian companies, and over the coming couple of week’s stocks would trade positively. The sector and the associated counters are unlikely to see a significant impact of Interim Budget announcements scheduled for Monday. The decisions taken on Monday could well be reversed or scrapped post the elections due in Apr-May. The Central government is presenting vote-on-account for four months as general elections are due in Apr-May. Sun Pharmaceuticals Ltd and Aurobindo Pharma Ltd are the top picks for the week.
Counters of major pharmaceutical manufacturers are seen moving with a marginal positive bias during the coming week, even as a phase of consolidation is likely. Consolidation is likely in pharma stocks as there is no significant trend prevailing, and the earnings season is over. GSK Pharma's (GlaxoSmithKline Pharmaceuticals Ltd) results are eyed, but they should be in line with expectations. GlaxoSmithKline Pharmaceuticals is scheduled to detail its earnings for Oct-Dec on Tuesday. The company is expected to post a net profit of 1.18 bln rupees, down 15% on year, according to an average of estimates. Net sales for the company are seen at 6.52 bln rupees, down 1% on year. The increasing acceptance of low-cost drugs by Indian companies, and over the coming couple of week’s stocks would trade positively. The sector and the associated counters are unlikely to see a significant impact of Interim Budget announcements scheduled for Monday. The decisions taken on Monday could well be reversed or scrapped post the elections due in Apr-May. The Central government is presenting vote-on-account for four months as general elections are due in Apr-May. Sun Pharmaceuticals Ltd and Aurobindo Pharma Ltd are the top picks for the week.
