Pharma Stocks Outlook for the week – 02 to 05.05.2017
Pharma Stocks Outlook for the week – 02 to 05.05.2017
Weakness in stocks of pharmaceutical companies is expected to continue next week. The sector may seesome defensive buying due to risk aversion in the broader market ahead of the US Federal Reserve'spolicy meeting, outcome of which is due on Wednesday. There could be some buying at lower levels, ifmarket weakens further next week. Yesterday, the Nifty Pharma index gained 0.2% to end at 10120.9points as against a 0.4% fall in the Nifty 50 index.The Derivatives of pharma sector has seen a strong build-up of short positions in the past two derivativeseries as it remains plagued by regulatory concerns relating to the US Food and Drug Administration.The Medical Council of India's advice for doctors to follow its 2016 notification requiring them toprescribe generic medicines also added to the pain for pharma companies.Stocks of Alembic Pharmaceuticals, Ajanta Pharma, ockhardt and Sun Pharma Advanced Research willgrab most of the headlines as they report their Jan-Mar earnings next week.
Source : Cogencis Information Services Ltd.
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Pharma Stocks Outlook for the week – 02 to 05.05.2017
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Weakness in stocks of pharmaceutical companies is expected to continue next week. The sector may seesome defensive buying due to risk aversion in the broader market ahead of the US Federal Reserve'spolicy meeting, outcome of which is due on Wednesday. There could be some buying at lower levels, ifmarket weakens further next week. Yesterday, the Nifty Pharma index gained 0.2% to end at 10120.9points as against a 0.4% fall in the Nifty 50 index.The Derivatives of pharma sector has seen a strong build-up of short positions in the past two derivativeseries as it remains plagued by regulatory concerns relating to the US Food and Drug Administration.The Medical Council of India's advice for doctors to follow its 2016 notification requiring them toprescribe generic medicines also added to the pain for pharma companies.Stocks of Alembic Pharmaceuticals, Ajanta Pharma, ockhardt and Sun Pharma Advanced Research willgrab most of the headlines as they report their Jan-Mar earnings next week.
Source : Cogencis Information Services Ltd.