D-Street Buzz: Nifty Pharma falls 2%; Glenmark, Auro Pharma, Piramal Enterprises, Lupin touch 52-week lows

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26 Aug, 2025 12:21

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Most pharma stocks were trading in the red on October 7, keeping their sectoral index on NSE down.

The Nifty Pharma index was 2 percent down, while the benchmark Nifty50 was 0.13 percent up around 1130 hours IST.

Out of the total 10 components in the pharma pack, only two - Divi's Labs and Dr. Reddy's Labs - were in the green.

Shares of Glenmark Pharma, Aurobindo Pharma, Piramal Enterprises and Lupin touched their 52-week lows.

Shares of Glenmark Pharmaceuticals fell after the US Food & Drug Administration issued a warning letter to the company's Baddi facility.

USFDA inspected the Baddi facility in Himachal Pradesh between April 15 and April 20. The company had earlier informed that the inspection was classified as 'Official Action Indicated'.

Brokerage Emkay Global Financial Services said Weak US growth will once again be the dominating theme for most pharma companies for earnings in Q2 and will overshadow the revival in domestic business.

"We expect revenues and EBITDA to grow 12 percent and 8 percent year-on-year for our coverage universe – the lowest in the last four quarters," Emkay said.

"Margins should decline 140bps quarter-on-quarter for our coverage companies as they ramp up their R&D and specialty related spends. Further, the competition in high-margin products – gRanexa, gSensipar, gLialda, gLevorphanol – will also cause margins to fall," the brokerage added.

Equity benchmarks pared gains but traded in the green, supported by gains in shares of bank and financial heavyweights.

Yes Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Axis Bank were among the top gainers in the Sensex index.

On the flip side, Mahindra & Mahindra, Sun Pharma, ONGC, NTPC and IndusInd Bank were among the top losers.