Technically, the term 'Golden Cross' has bullish implications with short-term support seen moving higher. Apart from Sun Pharma, Aurobindo Pharma and Divi's Labs too witnessed this formation recently.
Analysts noted that while US generics face margin headwinds, domestic formulations and CDMOs remain resilient. Biosimilars are also poised for growth through new launches and regulatory support.
Leading the list is GNG Electronics (Target: ₹482 | Upside: 52%), named by Nirmal Bang, which expects robust growth as the company benefits from the govt's 'Make in India' thrust on electronics mfg.
Divis stock gained 2% in Monday's intra-day deals. Reports suggest the company is well positioned to benefit from emerging trends across both API and CDMO domains through innovation and capex.
Pharma shares crash: In the past four weeks, the Nifty Pharma index has slipped 5 per cent, as against 0.19 per cent decline in the Nifty 50.
Jefferies is optimistic on India's CRDMO sector, given its evolution from quasi-chemical firms into strategic partners for innovators; check more details
Divi's Laboratories reported a 14 per cent year-on-year jump in revenue at ₹2,410 crore in Q1FY26, compared to ₹2,118 crore in the year-ago period
Pharma stocks fell after Trump said tariffs will be imposed within a week, rising up to 250 per cent in 12-18 months
In the past six months, the Divis Labs stock has outperformed the market by surging 18 per cent, as against 1.4 per cent fall in the BSE Healthcare index and 7 per cent rise in the BSE Sensex.