Nifty Pharma index rises 2.5% on strong growth prospects; Dr Reddy’s, Piramal Pharma jump up to 11%- Moneycontrol.com
The Nifty Pharma index rose 2.5% on April 23 on strong growth prospects with Dr Reddy's Laboratories, Piramal Pharma leading the gains.
Nomura said the India pharmaceuticals market continued to grow in double digits at 10.1% year-on-year in March. The brokerage said most companies under its coverage grew ahead of expectations during the month, reported Reuters.
At 2:35 pm on April 23, Nifty Pharma index was trading 2.5% higher at 23,027.55 with Dr Reddy's, Piramal Pharma and Cipla leading the gains by climbing 10%, 6.5% and 5.5%, respectively. Mankind Pharma, Laurus Labs and Glenmark shares rose 3.1%, 2.7% and 2.6%, respectively.
Dr Reddy's Laboratories gained traction on April 23 amid semaglutide buzz with news reports suggesting potential Canada approval in focus.
Meanwhile, CNBC-TV18 reported that Dr Reddy's is still awaiting approval for semaglutide in India.
Semaglutide is the active ingredient of popular weight-loss drugs Wegovy and Ozempic, which are manufactured by Denmark-based Novo Nordisk.
Meanwhile, Elara Securities said that the depreciation of the Indian rupee against major global currencies in the past 3-4 months is supportive for Indian pharmaceutical sector's reported INR earnings. The sector is predominantly overseas-oriented, with a large share of revenues derived from exports out of India or from local businesses of foreign subsidiaries, it said.
"Companies with a larger share of overseas revenues are better placed to retain the currency tailwind at the margin level, whereas those with limited international exposure may experience margin pressure from higher input and operating costs," said the brokerage.
"We see up to 5% beneficial impact of INR depreciation on FY27 revenues for the companies and up to 15% beneficial impact on EBITDA. Zydus Lifesciences and Granules India are the top picks from our coverage universe," the brokerage added.
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