Dr Reddy's, Lupin: Pharma stocks rally in weak market; Nifty Pharma index surges over 1%

Pharma stocks bucked the broader market trend and emerged as the sole gainer on Thursday, December 19, thereby outperforming other sectors in a plunging market.

Shares of several pharmaceutical companies, including Dr Reddy's Labs, Cipla, Laurus Labs, Lupin, JB Pharma, and Aurobindo Pharma, among others, rose in the range of 1 to 5% during the session.

The Nifty Pharma index was trading 1.5% up at 22,650.6.

Selling was witnessed across the board as the Fed's 'cautious' remarks on the rate cut trajectory ahead unnerved market participants.

The US Fed monetary policy decision, despite the announcement of a 25 bps rate cut, led to a crash in domestic and international markets as the Fed has now decided to slow down the pace of rate cuts.

While markets were expecting four rate cuts in the upcoming year, the US Federal Reserve is apparently only eyeing two for 2025.

Benchmark indices, SENSEX and NIFTY50, were down over 1%.

Among pharma names, Dr. Reddy's Laboratories’ stock gained nearly 4% with favourable ratings from the experts.

Last seen, the stock was trading 3.99% up at 1,326.35 apiece on the NSE.

Lupin, another pharma major, also created a buzz in the market, rising by over 2% on the back of US Food and Drug Administration approval for its generic HIV drug.

The stock was trading 2.44% higher at ₹2,150.30 per share on the NSE.

As per reports, the India Pharma industry is expected to show robust growth in the upcoming months. “The Indian pharmaceutical sector, currently valued at $55 billion, is expected to reach $130 billion by 2030 and $450 billion by 2047,” The Hindu reported, quoting experts.

Other pharma stocks, such as JB Chemicals & Pharmaceuticals and IPCA Laboratories, surged by up to 5%.

JB Chemicals was trading 3.41% up at ₹1,919.15 apiece, and IPCA Laboratories was 5.34% up at ₹1,593.95 per share.