Pharma Stocks Outlook: Seen up next week as defensive bet Saturday, Sep 6 Shares of pharmaceutical companies are seen up next week because investors may buy them as defensive bet in a broad market that is seen weak. However Ranbaxy, Cipla and Dr Reddy's Laboratories are seen weak on the charts. This week, Ranbaxy plunged 13% after Daiichi's open offer for its shareholders ended on Thursday. The weakness in Ranbaxy is likely to see index funds shifting to other stocks like Sun Pharmaceutical Industries. Shares of Sun Pharmaceutical Industries, up 1.9% this week, are seen rising further next week, according to the charts. Among other shares, Dr Reddy's Laboratories may move sideways, while Cipla looks weak. Fundamentally, the shift could also be seen towards mid-cap stocks. The BSE Healthcare Index weakened more than the broad indices this week, down 1.3%, mainly because of Ranbaxy. For the 1-year period till date, Sensex has shed 30%, while the healthcare index has fallen by a meagre 3%. Hence, the upside in pharmaceutical shares is seen capped going forward. In mid-cap segment, Piramal Healthcare, Alembic, and Glenmark Pharma may be in the limelight.
Closing prices, in rupees, of leading pharmaceutical shares, on National Stock Exchange Friday, compared with a week ago: Company Sep 5 Aug 29 % Change Cadila Healthcare 333.20 323.35 3.1 Cipla 233.45 240.05 (-) 2.7 Dr Reddy's Laboratories 584.65 579.15 1.0 GlaxoSmithKline Pharmaceuticals 1,177.10 1,175.65 0.1 Pfizer 560.20 587.00 (-) 4.6 Ranbaxy Laboratories 450.70 518.80 (-)13.1 Sun Pharmaceutical Industries 1,500.25 1,472.30 1.9 BSE Healthcare Index 4258.04 4311.73 (-) 1.3 Nifty 4352.30 4360.00 (-) 0.2 Sensex 14483.83 14564.53 (-) 0.6 End B.Karthick Research Analyst. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
