Pharma Stocks Outlook for the week (18-22.06.2012)

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Jun 18, 2012, 5:37:00 AM6/18/12
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RUPEE DESK: Pharma Stocks Outlook for the week (18-22.06.2012)

 

 Pharmaceutical stocks are likely to trade in a narrow range with a positive bias next week. Keeping in mind the broad market is currently testing one of its lows, pharmaceutical stocks, being defensive in nature, are likely to gain next week.


Investors are also likely to take cues from the Reserve bank of India's monetary policy review on Monday. Of the 35 economists, bankers, mutual funds, and corporate entities are expected RBI to slash its benchmark repo rate by at least 25 basis points at its mid-quarter policy review.


The dismal industrial production data released this week has reaffirmed the need for a quick response by the RBI. In April, the index of industrial production grew a mere 0.1% after having contracted 3.2% a month ago. Pertaining to specific events and news, some movement might also be seen in certain stocks.


Cadila Healthcare is likely to see some highs next week as the US Food and Drug Administration's approval to the company's Gujarat plant is seen coming in shortly.


Shares of Ranbaxy Laboratories are also seen gaining next week as the stock has already corrected a lot in the past few days. The stock is seen facing a resistance of 485-490 rupees and a support of 470 rupees next week.


Dr Reddy's Laboratories' shares are also expected to see some highs next week as we feel the stock has been hammered in the past few days. The stock has corrected a lot in the past few days and currently the valuations look attractive to enter.

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