CNX Pharma index down for sixth straight day

Jubilant Life, Dishman Pharma, Suven Life, Natco Pharma, JB Chem, Marksans Pharma and Unichem down 4%-10%.

Shares of pharmaceuticals companies were under pressure in late morning deals with the CNX Pharma index trading lower for the sixth straight session on the National Stock Exchange (NSE).

At 09:39 AM, CNX Pharma index was down 1.5% or 179 points at 12,061 compared to a marginal 0.10% rise in the CNX Nifty.

In past six trading sessions, the pharma index has dipped 8.7% against 5% decline in the benchmark index. CNX Pharma index had outperformed the market by gaining 21% till August against 3.7% fall in the CNX Nifty.

Cipla, Glenmark Pharmaceuticals, Aurobindo Pharma, Lupin, Divi’s Laboratories, Dr Reddy’s Laboratories and Sun Pharma Industries from the CNX Pharma index were down 1%-2%.

Explains G. Chokkalingam, Founder & Managing Director, Equinomics Research & Advisory: “Investors have lost a lot of money in the non-defensive stocks in the large-cap and the mid-cap space, which is typical of a bear market. So now, the defensives have become the victims of the selling pressure. Having said that, the fall presents a good opportunity to buy these stocks. I like JB Chemicals, Claris Lifesciences, Cipla, Biocon, Lupin.” 

Jubilant Life Sciences, Dishman Pharmaceuticals and Chemicals, Suven Life Sciences, Natco Pharma, JB Chemicals & Pharmaceuticals, Marksans Pharma and Unichem Laboratories are among others down 4%-10%.

“The larger issue with some of these pharma companies is dealing with the currency fluctuations across the globe. In dollar terms, there is still not much of a problem as compared to the other currencies. So this currency related volatility is impacting the operations of these pharma companies,” said Deven Choksey, MD and CEO, K R Choksey Shares and Securities.

“Though the fundamentals of pharma companies do not change beyond a point, we are still unsure of how much the impact will these fluctuations have in the quarters going ahead. Moreover, the valuations at which these stocks are quoting at, I am not in a hurry to buy these stocks. It is better to wait,” he adds.

Company	31/12/2014	31/08/2015	% chg	08/09/2015	% chg*
Jubilant Life	121.15	357.20	194.84	272.90	-23.60
Marksans Pharma	61.35	90.60	47.68	76.50	-15.56
Granules India	82.74	124.25	50.17	105.30	-15.25
Wockhardt	1009.75	1342.65	32.97	1143.85	-14.81
Glenmark Pharma.	770.35	1150.65	49.37	980.45	-14.79
Shasun Pharma.	285.40	372.45	30.50	317.90	-14.65
Strides Arcolab	960.15	1221.80	27.25	1044.05	-14.55
Aarti Drugs	426.28	566.15	32.81	488.00	-13.80
Divi's Lab.	1718.50	2370.65	37.95	2071.10	-12.64
Ajanta Pharma	931.78	1498.95	60.87	1341.50	-10.50
*Change over August 31, 2015
Price on BSE in Rs at 09:39 AM.