Pharma
Stocks Outlook for the week – 23 to 27.05.2016
(Mixed; weak rupee to aid, Cipla
result eyed)
( www.rupeedesk.in )
Stocks of Pharmaceutical companies
are seen trading mixed next week with Jan-Mar earnings providing fresh triggers and a weak
rupee against the dollar lending some support. On Friday, the rupee ended at 67.44 per dollar--its
lowest closing level since Mar 2. As exports form a major chunk of sales of most Pharmaceutical
companies, the fall in the rupee against the greenback is seen as a positive. Weak sentiment in the broad
market and regulatory issues faced by a number of Pharmaceutical companies will,
however, continue to put pressure on the stocks.
Volatility in the market is expected
next week due to the expiry of the May derivatives contracts on Thursday. Market participants will
keep an eye on Jan-Mar earnings of Nifty 50 constituent Cipla, which are due on Tuesday. Cipla's
consolidated net profit is seen rising 44.8% on year to 3.76 bln rupees in Jan-Mar, and net sales are
seen up 13.9% at 33.96 bln rupees. The company's net profit should grow due to margin
improvement, reduction in interest cost, higher other income, and lower tax rate.