Movement of pharmaceutical stocks to be mixed - Integrated

The movement of stocks of major pharmaceutical companies is likely to be mixed next week and may be influenced by stock-specific news. Ranbaxy Laboratories scrip that has taken a strong beating in the last few weeks over regulatory issues is unlikely to find any respite in next five trading sessions. On Wednesday, the European Commission has imposed a fine of 146 mln euros on Danish pharmaceutical company Lundbeck and five generic drug makers, including Ranbaxy Laboratories Ltd, for colluding to delay the launch of cheaper generic versions of anti-depressant drug citalopram.

Ranbaxy will have to pay a fine of 10.32 mln euros, or 810 mln rupees, to the commission, while Lundbeck has been fined 93.77 mln euros. Dr Reddy's has consolidated and is expected to consolidate further. Sun Pharmaceutical Industries is expected to trade in the narrow range and is seen consolidating next week. Stocks of pharmaceutical companies are also likely to take cues from the broader market that has seen choppy trade this week due to the rupee dipping to new lows against the greenback. Trade on the stock exchanges is expected to be volatile next week ahead of the June futures and options expiry, due Thursday. However, the bias for the market is slightly positive, as indices appear oversold.

Source : Equity Bulls

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