Riggers target pharma stocks, index at 1-yr high News Archive News

If it was banking stocks last month and oil/gas stocks last week, now it’s the turn of pharmaceuticals stocks this week. Manipulators a...

By: ENS Economic Bureau

Mumbai | June 28, 2003 12:00 AM IST

2 min read

If it was banking stocks last month and oil/gas stocks last week, now it’s the turn of pharmaceuticals stocks this week. Manipulators are back in action along with some foreign funds and local mutual funds. Pharma stocks staged a rally on Friday with many of them soaring to their new highs. These stocks gained up to 15 per cent and the BSE Healthcare index also galloped to a new one-year high.

While Lupin, Divi’s Labs and Matrix Labs jumped to their all-time highs, others like Dr Reddy’s Labs, Nicholas Piramal, Alembic, Cadila Healthcare, Aurobindo Pharma, Orchid Chemicals and IPCA Labs touched a new 52-week high during the day.

Rupee up 14 paise

MUMBAI: The rupee gained a whopping 14 paise against the dollar on Friday to close at 46.3950/4050 from the overnight level of 46.5350/5450. This is the highest closing level since February 6, 2001. Heavy corporate dollar sales along with increased foreign institutional investors (FIIs) inflow helped the rupee to breach the psychological 46.50 mark.

Some of the pharma stocks which were active in the 2000-01 ‘bull run’ are once again in the forefront now. On Friday, Lupin emerged as the top gainer among the stocks constituting BSE Healthcare index. The stock zoomed 14.55 per cent during the day to close at Rs 295.6. “The action in the counter was backed by reports of the company’s plans to launch a branded product in the US market. But these are just excuses. Riggers are having a field day,” said an analyst.

Retail investors are getting attracted by the sustained rise in stocks. Outsourcing contracts in low-end R&D activities and contract manufacturing from MNCs and the recent changes in the US FDA rules are expected to be favourable to domestic companies and have been a major driver of their stocks on the bourses in the past few weeks, say brokers.

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