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Major pharmaceutical stocks gain big as investors scout for value buys

Scrips of Dr Reddy’s, Aurobindo Pharma, Cipla, and Sun Pharma, among others, gained between 2 and 5 percent.

August 24, 2017 / 04:00 PM IST

Shares of pharmaceutical majors gained the most on both indices as investors could have bet positively on stocks and sectors after several sessions of weak trade.

Scrips of Dr Reddy’s, Aurobindo Pharma, Cipla, and Sun Pharma, among others, gained between 2 and 5 percent.

There has been imminent weakness in the sector, largely on the back of regulatory issues, pricing pressure in the US and domestic business being hit as well. Niche indices on Sensex and Nifty fell 12-16 percent in this calendar year.

HDFC Securities recently in its report though believed there could be better times for the sector. “There are structural positives on India business given the strong GDP growth, improving insurance coverage, healthcare infrastructure, etc” it said in a report. Further, it also sees regulatory issues being a short term pain, while in the long term it could be better going forward.

At 15:30 hrs Sun Pharmaceutical Industries was quoting at Rs 483.00, up Rs 14.25, or 3.04 percent, while Cipla was quoting at Rs 573.60, up Rs 14.00, or 2.50 percent.

Meanwhile, Aurobindo Pharma was quoting at Rs 732.55, up Rs 34.05, or 4.87 percent on the BSE, while Dr Reddys Laboratories was quoting at Rs 2,082.00, up Rs 52.50, or 2.59 percent.

first published: Aug 24, 2017 04:00 pm

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