Saturday, April 15, 2017

Pharma Stocks Outlook for the week – 17 to 21.04.2017

Pharma Stocks Outlook for the week – 17 to 21.04.2017


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Pharma Stocks Outlook for the week – 17 to 21.04.2017
  www.rupeedesk.in )

Stocks of pharmaceutical companies are likely to be mixed next week, as investors take positions based on earnings of these companies for the quarter ended March. The bias for the sector, however, is negative on account of various headwinds, both in the domestic and US markets. Pharmaceutical companies are expected to report modest growth in the March quarter due to fierce competition, slowing sales growth and regulatory issues, especially those pertaining to the US Food and Drug Administration. Also, the strength in the rupee against the dollar has resulted in market participants staying away from the export-oriented sector. Last trading day the rupee ended at 64.41 a dollar, which, while weaker than 64.28 at the end of last week, is substantially stronger than the 68-odd levels at the beginning of the year. The stronger rupee was the most severe of all headwinds facing the sector. Caps on prices of drugs in India and the fact that the government may make it mandatory to highlight names of generics on medicine packets are other concerns. Currently, almost all drugs sold in India are branded generics. On technical charts, the Nifty Pharma index is trading below all its major moving averages, which indicate a bearish bias. It faces strong resistance at around 10800 points.

Source : Cogencis Information Services Ltd.