Pharma Stocks Outlook for the week – 18 to 22.04.2016
( www.rupeedesk.in )
Pharmaceutical
stocks are seen underperforming the broader arket next week on account of
regulatory concerns and as investors focus on nfrastructure sector and those dependent
on rural demand. The bias for the broad market remains positive after benchmark
indices ended at their highest levels since Jan 1.
On
technical charts, most stocks are approaching their 100-day moving average, and
are
seen
correcting after they hit their resistance.
Investors
would also be aligning their portfolio to expectations of earnings for the quarter
ended March, which will be released by companies over the next one-and-a-half month.
Individual earnings are expected to be mixed, with players like Sun Pharma, Lupin,
Aurobindo Pharma, Torrent and Natco likely to report good growth, while Dr Reddy's,
Cadila and Glenmark would disappoint.
Investors
will eye Delhi High Court's hearing on the government's ban on 344 fixed dose
combination of drugs on Monday. Stocks affected by the ban--Pfizer, Abbott India,
Glenmark Pharmaceuticals, Procter & Gamble Health and Hygiene Care—would be
in focus.
Traders
remain cautious on the stocks on account of the uncertainty due to the hearing
and would be hoping for clarity on the matter, according to market
participants.