Shares of several mid-cap pharma companies hogged the limelight in mid-morning trade, bucking the weak broad market sentiment as hopes of the US FDA approvals gaining pace going ahead and stocks turning attractive after recent sell-off triggered recovery.
Aurobindo Pharma emerged as the top gainer in the BSE mid-cap space, rising nearly 3 percent to Rs 1,390. Last month, the company received approval from the US drug regulator for manufacturing and marketing of cefixime for oral suspension indicated for the treatment of infections caused by susceptible strains of the designated organisms in urinary tract infections.
Fortune Group's Ashish Chaturmohta expects Aurobindo Pharma to test Rs 1,430-1,440 in next couple of trading sessions.
Among other gainers, Wockhardt Pharma gained 2.65 percent to Rs 1,368.25, Cadila Healthcare 2.13 percent to Rs 1,739.85 and Biocon nearly 1 percent at Rs 453.60. Shares of Apollo Hospital and Glenmark Pharma were up 0.5 percent, respectively.
"Several mid-cap pharma shares are available at cheap valuations. But one needs to be careful trading in several mid and small-cap pharma shares, especially when they have rallied over 60 percent in last one year," said G Chokkalingam, founder & managing director, Equinomics Research & Advisory.
In case of Wockhardt, Chokkalingam said investors should wait until the US FDA nod revokes ban on its two plants, and the company revives its US business.
Recovery in mid-cap pharma shares comes even as the benchmark Sensex and other key indices continue to linger in negative territory.
Updated Date: May 19, 2015 12:19:07 IST