Despite weak stock market here's why Pharma stocks surged today

Mumbai: Pharma stocks led by Apollo Hospitals, Cadila Health and Dr Reddy’s Lab today gained as much as 5.5 per cent on value-buying in an otherwise weak stock market.

Shares of Dr Reddy’s Lab rose by 1.88 per cent to close the day at Rs 2,152.85. In intra-day trade, the stock touched its all-time high of Rs 2,168.50 on the BSE. The scrip was the top gainer on the Sensex.

Apollo Hospitals surged 5.41 per cent, while Cadila Health rallied 5.48 per cent.

Among others, Aurobindo Pharma was up 4.36 per cent, Ranbaxy Lab (4.42 per cent), GlaxoSmithKline Pharmaceuticals (3.52 per cent), Biocon (2.80 per cent) and Cipla (1.83 per cent).

Ranbaxy Lab had fallen by over 17 per cent in May. The company has agreed to pay USD 500 million fine to US authorities after pleading guilty to “felony charges” for making and selling adulterated drugs.

Led by gains in these stocks, the BSE healthcare index ended the day 1.88 per cent higher at 8,977.96 and was the top gainer among the 13 sectoral indices.

“Pharma sector did give some support to the otherwise weak market. Ranbaxy gained more than 4 per cent. The stock has been facing negative news and concerns and as a result its price did see sharp correction. Other pharma stocks also gained,” said Nagji K Rita, Chairman & MD, Inventure Growth & Securities.

Meanwhile, in the broader market, the BSE benchmark Sensex ended the day at 19,545.78, down 64.70 points.

PTI