Pharma Stocks Outlook: Up next week; Cipla seen sideways

[B. Karthick]

Pharma Stocks Outlook: Up next week; Cipla seen sideways

Shares of pharmaceutical companies except Cipla are seen up next
week. Cipla is expected to move sideways on lack of triggers.
This week Bombay Stock Exchange Healthcare index rose by 4.6%, while
the benchmark indices were down 2.5%. The trend is likely to continue
next
week.
Pharmaceutical shares are considered defensive bets in a volatile
market.
Among mid-caps, Aurobindo Pharma is seen in focus ahead of its Jan-
Mar
earnings Wednesday.
Shares of Dr. Reddy's Laboratories and Ranbaxy Laboratories are on a
strong footing with the former outperforming the benchmark indices
this week.
Ranbaxy shares are showing an uptrend after the promoters sold
their
stake to Japan's Daiichi this week.
Sun Pharmaceutical also looks set for an upside next week.
Shares of pharmaceutical companies apart from being defensive, have
received a boost after the Ranbaxy-Daiichi deal. This would play on
the minds
of investors for some time.

Closing prices, in rupees, of leading pharmaceutical shares on
National
Stock Exchange yesterday, compared with a week ago:
.
Company Jun 13 Jun 6 %
Change
.
Cadila Healthcare 311.70 295.25
5.6
Cipla 210.90 207.85
1.5
Dr Reddy's Laboratories 727.80 696.25
4.5
GlaxoSmithKline Pharmaceuticals 1,088.65 1,091.80 (-)
0.3
Pfizer 619.80 597.35
3.8
Ranbaxy Laboratories 566.85 506.90
11.8
Sun Pharmaceutical Industries 1,472.10 1,423.80
3.4
.
BSE Healthcare Index 4494.02 4296.01
4.6
Nifty 4517.10 4627.80 (-)
2.4
Sensex 15189.62 15572.18 (-)
2.5
End

B.Karthick,
Research Analyst.