Pharma stocks buzz; Cipla, Sun Pharma surge

Pharma stocks were showing traction in the early hours of trade on Wednesday. The pharma stocks were driving both the benchmark indices to higher levels. Cipla was the top gainer on both BSE Sensex and Nifty50.

Cipla was trading at Rs. 634.45 per share, up by 4.29 per cent, followed by Sun Pharma at Rs. 538.95, up 2.10 per cent, Divis Lab was at 1,039.55, up 2.22 per cent,  Dr. Reddy Lab was at Rs. 2,413.90, up 1.59 per cent, Lupin was at Rs. 872.00, up 1.34 per cent, Aurobindo Pharma was at Rs. 790.00, up 1.28 per cent, Glenmark was at Rs. 608.10, up 0.94 per cent.

The spike in pharma stocks can be attributed to the extensive generic as well as speciality product portfolios developed by the pharmaceutical companies and the expected new launches for the upcoming year  FY18-19. The pharma rally also indicates buying in these stocks by fund houses after significant correction in the sector.

The S&P BSE Healthcare index which represents a host of big and small pharma companies was up by nearly one per cent. Stocks like Indoco Remedies, Morepen Lab, Gufic Bio, Ipca Lab were trading higher between 4 to 2 per cent. While Nifty Pharma index which represents the big pharma players was up 1.39 per cent on Wednesday at 10:12 hours.