Action in the pharmaceutical counter is likely to be stock-specific next week, as companies will detail their quarterly earnings. Next week, companies such as Lupin Ltd, Ipca Laboratories Ltd, Torrent Pharmaceuticals will detail their Jul-Sep earnings. Lupin, which will declare its earnings Tuesday.
Robust growth in the US and Japan markets and weakness in the rupee against the US dollar is likely to have given the already fast-growing Lupin Ltd a booster shot in Jul-Sep. However, increase in effective tax rate and rise in cost of some raw materials, coupled with decline in other operating income, could weigh on Lupin's bottomline in Jul-Sep.
However, Ipca Laboratories, which will report its quarterly numbers Thursday, is likely to be muted next week. The company is seen reporting numbers similar to expectations, but the stock is unlikely to gain, as the market has already priced in the company's Jul-Sep earnings. For other pharmaceutical stocks, the movement next week would primarily depend on the broad market.
