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NIFTY analysis with experts, Indian Pharma market slows down, Indian markets show signs of recovery…. Market updates for 11/12/18

PurpleTrades - stock market courses > News > NIFTY analysis with experts, Indian Pharma market slows down, Indian markets show signs of recovery…. Market updates for 11/12/18

Report by- Sabyasachi Bhattacharya


Indian Pharma market slows due to lower offtake of respiratory drugs-


The Indian pharmaceutical market (IPM) grew 6.3 percent in November, much slower than the previous month, due to lower offtake of anti-infective and respiratory medicines, according to market research firm AIOCD-AWACS. Anti-infectives sales grew 3.8 percent in November compared to 13.6 percent in October. Respiratory segment sales growth dropped to 2.6 percent versus 14.7 percent in the same period. November to January is generally considered peak season for the sale of anti-infectives and respiratory drugs. But the drop in sales indicate the slower onset of the season or it could be due to pharma companies booking higher sales in the September-October period in anticipation of a good season. This impacted the sales of Cipla, which relies heavily on anti-infectives and respiratory. The same grew 5.1 percent in November. Alkem Laboratories that banks on anti-infectives saw a 3.3 percent sales growth. In chronic therapies, anti-diabetic saw double-digit growth (12.4 percent). Cardio grew 11.9 percent. However, central nervous system (CNS) slowed down to 5.1 percent in November compared to 10.3 percent. The Indian Pharmaceutical Market (IPM) saw sales of Rs 1,1053.5 crore in November. Volumes in November declined 0.8 percent, while price growth stood at 4.8 percent. The newly-introduced drugs that mostly do not fall under price controlled category rose 2.7 percent. Fixed dose combination (FDC) drugs, or the cocktail of two or more drugs, saw sales decline by 45.9 percent, while FDCs not under ban grew 6.2 percent. Single molecules grew 7.1 percent in November. The government banned hundreds of FDCs citing lack of therapeutic justification. Molecules under the price controlled National List of Essential Medicines (NLEM) 2013 showed a growth of 2.6 percent, whereas the non-NLEM market grew 6.6 percent. Sales of multinational companies (MNCs) grew 6.8 percent in November, while the same for Indian companies rose slightly slower at 6.2 percent during the same period. Among the top 10 Indian drug makers, Torrent Pharmaceuticals had the highest growth at 10.6 percent in November, followed by Intas Pharmaceuticals at 10.7 percent, Mankind at 10.5 percent and Lupin at 8.6 percent. Market leader Sun Pharmaceutical Industries and Cadila Healthcare grew 3 percent and 3.7 percent, respectively. From the MNC pack Abbott India and GlaxoSmithKline Pharmaceuticals grew 8.3 percent and 15.9 percent, respectively. Though not among the top 10, Bayer India is the fastest growing company at 28.9 percent, followed by Boehringer Ingelheim India at 22.9 percent. The top 10 drug makers contribute little over 40 percent to the Indian Pharmaceutical Market.

Source- MoneyControl, Purple Trades Research Department   




Indian markets recover after having a major Gap-Down opening-

Chart source- ChartInk

Indian markets started the week on a very negative note as major Indices, but recovery of some sort was seen today by major Indices like Nifty and Sensex. As you can see on the chart given above Nifty although starting off downwards, recovered throughout the day and ended up higher. During the election time there is a lot of volatility seen in the markets. Major setback to BJP as congress has won majority in most of the states. In what was anticipated to be a day of bloodbath on D-Street, a trend reversal in the last few hours of trade helped Indian shares close on a positive note. An abrupt resignation by RBI governor Urjjit Patel late on Monday, along with jitters among investors who bet on a stable government added to the negative sentiment. In fact, overnight, the Nifty futures on Singaporean Exchange fell 450 point as well, bracing investors for a similar impact here. However, some clarity emerging on single party getting a majority in all states could have aided sentiment on the markets. Among sectors, pharmaceuticals, PSU banks, consumption, IT and automobiles, among others, were the big gainers. Meanwhile, the Nifty Midcap index closed with gains of 2 percent. At the close of market hours, the Sensex was up 190.29 points or 0.54% at 35150.01, while the Nifty was up 60.70 points or 0.58% at 10549.20. The market breadth was positive as 1623 shares advanced, against a decline of 771 shares, while 139 shares were unchanged. Yes Bank and Sun Pharma were the top gainers, while HDFC Bank, Bharti Airtel, HPCL and IOC lost the most.



Let’s take a look at the heat map-


Let’s take a look at the performance of major Indices-

Global markets plunge as well. Indian markets as we saw earlier took a nosedive but we weren’t alone. US markets Index NASDAQ, European Indices FTSE, DAX, CAC and Asian Indices like Nikkei and Straits Times took a beating too.

Source- MoneyControl, Purple Trades Research Department   


Key Points for Traders to watch out for while trading Nifty tomorrow-

  • 10,520 is a short term support for Nifty.
  • If Nifty breaks 10,520 then it has the potential to go down.
  • 10,580 is a short term resistance for Nifty.
  • If Nifty breaks 10,580 then it has the potential to go up.


Top sectors that moved the market today-                            Data source- Moneycontrol


Top Gainers for today-                                                                                        Data source- Moneycontrol



Top losers for today-                                                               Data source- Moneycontrol


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