Nifty Pharma index today
At 02:23 PM; Nifty Pharma index was up 0.74 per cent at 23,420.70, as compared to 1.5 per cent decline in the Nifty 50. In the past one month, the pharma index rallied 4.5 per cent, as against 7.8 per cent decline in the benchmark index.
Of these, Ajanta Pharma, Aurobindo Pharma, Glenmark Pharmaceuticals and JB Chemicals & Pharmaceuticals hit their respective 52-week highs in intra-day trade today.
Why are pharma stocks outperforming in a weak market?
According to media reports, medicine prices in India may increase as the cost of key raw materials or active pharmaceutical ingredients (APIs) surged by nearly 30 per cent in recent weeks. Vessel shortages linked to disruptions in shipping routes from Iran have slowed movement of raw materials from China, the largest supplier. Industry experts have urged the National Pharmaceutical Pricing Authority to allow price hikes beyond limits under the Drugs Price Control Order 2013 to offset rising costs.
Q3FY26 review, outlook – Pharma & Healthcare performance
The pharmaceutical sector reported 12.3 per cent year-on-year (YoY) growth, led by India (+12 per cent YoY), while the US revenues were slightly muted due to lower gRevlimid sales. Chronic therapies drove India’s IPM (+12 per cent YoY), with GLP-1 therapies like Tirzepatide and Semaglutide maintaining strong momentum. Lupin and Dr Reddy’s delivered healthy performance, offsetting US generics pressures.
For pharma, companies with robust domestic chronic portfolios, biosimilars, and peptide pipelines are poised to outperform the broader IPM. Lupin and Aurobindo Pharma are particularly well-positioned with strong US product performance, successful launches, and market-leading India operations, analysts at Axis Securities said in sector report.
Meanwhile, the Indian API market, currently valued at approximately $15-16 billion, is projected to grow at a compound annual growth rate (CAGR) of 5–7 per cent in FY27 & FY28. The growth trajectory is supported by favourable government policies, a structural shift towards high-potency (HP API) and complex APIs, steadily rising domestic demand, and greater penetration into regulated and emerging markets, CareEdge Ratings said.
Pharma firms are shifting from basic APIs to complex APIs—aiming to counter price erosion, strengthen margins, and customer retention. Import reliance on China for Key Starting Materials (KSMs) remains high, though government initiatives are beginning to show progress, the rating agency said.
“Meaningful growth arising from a shift to high potent and complex APIs is expected to accrue after 2-4 years, as majority of the related projects are yet to achieve commercialisation and substantial production ramp-up. Capital expenditure is expected to rise due to increased investment requirements. High import dependence on China for KSMs persists; however, government initiatives are starting to yield results,” says Samyuktha R, Assistant Director, CareEdge Ratings. ============================================= Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.
