Pharma stocks move north tracking weakness in rupee

Twelve pharma stocks rose 0.24% to 2.55% at 11:19 IST on BSE amid continued weakness of rupee against the dollar.

Meanwhile, the S&P BSE Sensex was up 86.37 points or 0.33% at 26,299.81. The S&P BSE Healthcare index was trading 1.19% higher, outperforming the Sensex.

Divi's Laboratories (up 2.55%), Cadila Healthcare (up 1.74%), Glenmark Pharmaceuticals (up 1.7%), Ipca Laboratories (up 1.52%), Alkem Laboratories (up 1.39%), Dr Reddy's Laboratories (up 1.33%), Wockhardt (up 1.19%), Aurobindo Pharma (up 1.1%), Lupin (up 0.99%), Cipla (up 0.82%), Sun Pharmaceutical Industries (up 0.78%) and Strides Shasun (up 0.24%) edged higher. GlaxoSmithkline Pharmaceuticals (down 0.06%) edged lower.

A weak rupee boosts the value of overseas earnings of pharma firms in local terms. Pharma companies derive substantial revenue from exports.

In the foreign exchange market, the partially convertible rupee was hovering at 68.215, compared with closing of 68.06 during the previous trading session.

The BSE Healthcare index had underperformed the market over the past one month till 27 December 2016, sliding 7.58% compared with the Sensex's 0.39% fall. The index had also underperformed the market in the past one quarter, declining 13.15% as against the Sensex's 7.12% fall.

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