Pharma Stocks Outlook for the week – 09 to 13.Jun.2014
(www.rupeedesk.in)
(www.rupeedesk.in)
Stocks of major pharmaceutical
companies are likely to trade in a narrow range next
week as the broader markets are
seen trading positively due to a higher buying taking
place in high-beta stocks. The BSE
Healthcare Index is expected to trade in a narrow
range of 9900-10600 for a few
more weeks. Buying in Pharma sector will only begin if
the broad markets see a reversal
in the bullish trend. Ranbaxy Laboratories Ltd's stock
had been consolidating and any
untoward movement in the scrip was largely newsdriven.
Yesterday, stocks of Ranbaxy
Laboratories were up over 1% as the European Medicines
Agency has reinstated the good
manufacturing practices certificate to the company's
Toansa facility. The news is positive
for the company, and has come after a lot of
negative news flows on the
regulatory fronts. For Ranbaxy to build positive momentum,
it was essential for the stock to
break the 480-rupee-level. The 650-rupee-level was
important to be broken by stocks
of Sun Pharmaceutical Industries Ltd, failing which
they are expected to trade
range-bound, with a support level of 570 rupees. Stocks of
Bengaluru-based drug maker
Strides Arcolab Ltd are expected to continue their upward
momentum, after it closed nearly
10% up yesterday from the previous close on the news
that it has received a nod from
the US Food and Drug Administration to sell skin-disease
treating generic methoxsalen
capsules.
