Pharma stocks zoom: Laurus Labs, Aurobindo hit new highs in trade

The BSE Healthcare index rallied over 1% in Monday's trade. Thus far in the financial year 2026-27, it outperformed the market by soaring 25%, against a near 4% rise in the BSE Sensex.

BSE Healthcare index movement

 

Shares of pharmaceutical companies were in demand with the BSE Healthcare index rallying over 1 per cent in Monday’s intra-day deals, hitting a new high, backed by strong gains in Sun Pharmaceutical Industries, Torrent Pharmaceuticals and Glenmark Pharmaceuticals.

 

At 11:45 AM, the BSE Healthcare index was the top gainer among sectoral indices, up 1.2 per cent, compared to a 0.62 per cent rise in the BSE Sensex. Thus far in the financial year 2026-27, the healthcare index outperformed the market by soaring 25 per cent, against a near 4 per cent rise in the benchmark index.

 

Wockhardt, Akums Drugs and Pharmaceuticals, Concord Biotech, Mankind Pharma, Torrent Pharmaceuticals, Glenmark Pharmaceuticals, SMS Pharma, Sun Pharmaceutical Industries, Dr Reddy’s Laboratories and Thyrocare from the BSE healthcare index rallied in the range of 3-5 per cent. Laurus Labs and Aurobindo Pharma hit new highs on the BSE in intra-day deals.  

 

 

What’s driving healthcare stocks?

 

The US moved from tariff threats to a statutory framework for penalising major buyers of Russian energy, with the newly enacted Lindsey O. Graham Sanctioning Russia and Iran Act authorising tariffs of up to 100 per cent on all goods imported from qualifying countries.

 

Pharmaceuticals accounted for 7.1 per cent of India’s exports to the US in July 2026 - though India’s position is significantly stronger in generics, with Indian pharma companies supplying 47 per cent of all generic prescriptions in the US in 2022, according to IQVIA, stated analysts at JM Financial Institutional Securities in the sector update.

 

Meanwhile, analysts at Axis Securities remain positive on the long-term pharmaceutical outlook, supported by a strong pipeline across biosimilars, complex peptides, and non-US semaglutide opportunities. Companies with higher chronic exposure should continue to outperform the broader Indian Pharmaceutical Market (IPM), while new launches across the US and other international markets can provide incremental growth. The GLP-1 opportunity is particularly significant and could become an important growth driver over the next few years, the brokerage firm said. 

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In pharmaceuticals, analysts said they will closely track US pricing erosion, the normalisation of drug shortages, National List of Essential Medicines (NLEM)-related developments, new product launches and margin recovery. Raw material costs and global freight rates will also remain important for profitability.

 

The Semaglutide opportunity in India is unique due to a compressed launch window for innovators with the market still defining its boundaries. Analysts at Kotak Institutional Equities expect the overall GLP-1 market to reach ₹15,700 crore by FY32E (4 per cent of IPM), with generic products accounting for ₹9,900 crore. Including innovators, the brokerage firm expects 6.6 million Indians to be on GLP-therapies in FY32E versus 0.27 million currently.

 

Meanwhile, the Contract Research, Development, and Manufacturing Organization (CRDMO) sector collectively delivered 19 per cent year-on-year (YoY) growth, the highest in the past 7 quarters, led by Divi’s Labs, Laurus Labs,  Gland Pharma, Piramal Pharma, and Sai Life. Total sales (including non-CRDMO segments) were also robust, growing 14 per cent YoY.

 

Overall, industry commentary remained bullish for FY27, supported by healthy growth outlook. The management commentary indicated strong request for proposal (RFP) inflows from big pharma companies, alongside high order-book visibility for the current year, analysts at Jefferies said.  Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.