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Stocks of major pharmaceutical companies are seen in a range with a positive bias over the coming week, eyeing the Oct-Dec quarterly financial results of companies. Dr Reddy's Laboratories, Glenmark Pharmaceuticals, Lupin Ltd and Sun Pharmaceuticals are likely to post better-than-expected results. However, expects Ipca Laboratories, Ranbaxy Laboratories and Pfizer Ltd's earnings to be below estimates. The Supreme Court's verdict on the National Pharmaceuticals Pricing Policy is expected on Jan 14, which, would cause some movements in the counters of pharmaceutical stocks. In case the court clears government's new drug pricing policy, drug makers' counters are unlikely to witness much movement, as the possible impact on the companies' bottomline has already been factored in. However, if the verdict is not on anticipated lines, there could be movement in some stocks.
Under the National Pharmaceuticals Pricing Policy, laid in Parliament on Dec 7, the ceiling of prices of essential drug formulations would be based on the simple average price of brands with over 1% market stock. Earlier, the cap on essential drugs formulation and bulk drugs was cost-based. Stocks of Ranbaxy will face resistance at 524 rupees, and find support at 500 rupees. The counter would ascertain a short-term positive trend if it breaks the resistance. Stocks of Sun Pharmaceuticals would trade between 725 rupees and 763 rupees. The support, if breached, would ascertain a short-term negative trend. Cipla Ltd stocks are seen trading in a range with a negative bias in the coming week. The stock would find support at 413 rupees and face resistance at 430 rupees.
Stocks of major pharmaceutical companies are seen in a range with a positive bias over the coming week, eyeing the Oct-Dec quarterly financial results of companies. Dr Reddy's Laboratories, Glenmark Pharmaceuticals, Lupin Ltd and Sun Pharmaceuticals are likely to post better-than-expected results. However, expects Ipca Laboratories, Ranbaxy Laboratories and Pfizer Ltd's earnings to be below estimates. The Supreme Court's verdict on the National Pharmaceuticals Pricing Policy is expected on Jan 14, which, would cause some movements in the counters of pharmaceutical stocks. In case the court clears government's new drug pricing policy, drug makers' counters are unlikely to witness much movement, as the possible impact on the companies' bottomline has already been factored in. However, if the verdict is not on anticipated lines, there could be movement in some stocks.
Under the National Pharmaceuticals Pricing Policy, laid in Parliament on Dec 7, the ceiling of prices of essential drug formulations would be based on the simple average price of brands with over 1% market stock. Earlier, the cap on essential drugs formulation and bulk drugs was cost-based. Stocks of Ranbaxy will face resistance at 524 rupees, and find support at 500 rupees. The counter would ascertain a short-term positive trend if it breaks the resistance. Stocks of Sun Pharmaceuticals would trade between 725 rupees and 763 rupees. The support, if breached, would ascertain a short-term negative trend. Cipla Ltd stocks are seen trading in a range with a negative bias in the coming week. The stock would find support at 413 rupees and face resistance at 430 rupees.
