Pharma stocks today have their best day in over a month. Cipla, Dr Reddy’s surge

Share

[ad_1]

Indian stock markets gave up early gains to end lower today, led by losses in banking stocks. On the other hand, gains in pharma stocks helped cap losses. The blue-chip NSE Nifty 50 index closed 0.1% lower at 11,504.95, while the benchmark S&P BSE Sensex, which has fewer pharma components, ended down 0.34% at 38,845.82.

“Indian equity benchmark indices ended little changed on Sept 18 after a volatile final 1-1/2 hour of trade, attributed by some to the FTSE rebalancing and by reports of some tensions on the borders with Pakistan and China,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

The Nifty ended the week 0.4% higher, while the Sensex closed a tad lower.

The Nifty Bank Index finished 1.3% lower at its worst closing level in a month, with HDFC Bank closing at a month’s low. The top private sector lender fell 2.4%.

The Nifty Pharma index clocked its best day since August. 10, closing up 5%, as drugmaker Dr.Reddy’s Laboratories Ltd added 10.5% to close at a record high.

The pharmaceutical firm settled a patent litigation with U.S. drugmaker Bristol-Myers Squibb Co over the cancer treatment Revlimid, prompting analyst upgrades to its stock.

Drugmakers Lupin Ltd and Cipla Ltd jumped 4.7% and 7.3%, respectively, after U.S.-listed Perrigo Company Plc issued a U.S. nationwide recall of its albuterol sulfate inhalation aerosol product due to complaints of clogging issues.

Cipla and Lupin have their own versions of the aerosol product approved by the U.S. FDA.

139

listElement-graph-11600431987005-139

Here is what analysts said on today’s market performance:

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments

“There was a sharp fall in the markets that pushed the Nifty down by over 100 points from the day’s high. However, we were quick to regain most of the fall towards the end of the day. The markets continue to respect the 11500 level which is heartening for the bulls. The key level to be respected is 11300-11350 and if we can manage that, we should be able to achieve 11800 by the expiry next week.”

Sanjeev Zarbade, VP PCG Research, Kotak Securities

“The BSE Sensex was flattish for the week as concerns on weakening US markets, Indo China border issues and rising cases of covid continued to dampen investor sentiment despite the Federal reserve stance to keep interest rates low in the foreseeable future. FIIs were buyers while domestic mutual funds were sellers. IT stocks did well while bank stocks were under pressure.”

Nagaraj Shetti, Technical Research Analyst, HDFC Securities

“The short term trend of Nifty continues to be range bound with negative bias. There is a possibility of continuation of range movement for the next 1-2 sessions and there is a higher possibility of a retest of recent swing highs of 11600-620 levels before showing yet another sharp weakness from the highs by next week. Immediate support is placed around 11400-11350 levels.” (With Agency Inputs)

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *