Bulls Storm Laboratories In Bear-Hugged Stock Market
Journalists from Gulf Countries visited BSE
Neuland Laboratories Lead Pharma Intermediary Rally In Stock Market
By S Jha
New Delhi, October 11: Broader indices traded with negative biases on Friday. The stock market came under the shadow of spiraling Middle East Tension.
The spike in the crude oil price sobered the street sentiments. Bank Nifty turned brittle with fear of price rise spike.
Bank Nifty closed the day with a loss of 358 points. Nifty ended the day with the loss of 34 points. Sensex shed 230 points.
The street hope of a rate cut this year has already vanished. Spiralling Middle East Tension may spike crude oil prices. The cascading effects on inflation may turn the Reserve Bank of India hawkish per analysts.
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The market participants noted that the foreign institutional investors (FIIs) have turned bearish in the derivatives. The FIIs are short on the FnO segment per analysts.
Yet, the bulls had something to cheer for in the market. They went on joyride with pharmaceutical laboratories.
The Raisina Hills on a number of occasions alerted readers of the ongoing rally in the pharmaceutical intermediary manufacturers. The rally in such stocks seems only gaining further steam.
Neuland Laboratories shares gained over 14 per cent on Friday. Unichem Laboratories shares rose by almost seven per cent.
Divi’s Laboratory shared added another three per cent on Friday. The pharmaceutical ingredient manufacturer’s shares had gained over seven per cent yesterday.
Caplin Point Laboratory also gained marginally on Friday. Shares of Caplin Point Laboratory are approaching the ₹2000 level now. Laurus Labs also gained close to two per cent.
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The last few months have seen furious run in such scrips. Shares of Caplin Point Laboratory have gained 47 per cent in the last six months. It’s commanding a PE valuation of 30.
Shares of Divi’s Laboratory have risen by 65 per cent in the last six months. Divi’s Laboratory is trading on the bourses with a whopping 95 PE valuation.
Shares of Neuland Laboratories have risen by 111 per cent in the last six months. The scrip is trading at a PE valuation of 53.87.
Shares of Unichem Laboratories have gained over 30 per cent in the last six months. Laurus Labs and others have lagged behind the three big movers on the street in the last six months.
Lupin has also been making steady gains on the street among the large caps from the pharmaceutical segment. Several other small cap pharmaceutical intermediary manufacturers have also been trending up in recent months.
In the aftermath of the Covid-19 pandemic, the government had launched the production-linked incentive scheme for the pharmaceutical intermediary manufacturers to achieve self-reliance.
Disclaimer: This article makes no recommendation for buy or sell of shares of any company.
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