Pharma stocks buck weak market; Dr Reddy's Labs, Cipla, Lupin up 1-4%

Shares of pharma stocks emerged as outliers in a weak market, with prominent names like Dr Reddy's Labs, Cipla, and Lupin rising 1-4 percent on December 19. Other stocks, including Laurus Labs, JB Pharma, Ipca Labs, Aurobindo Pharma, Abbott India, Natco Pharma, and Glenmark, also surged 1-5 percent.

Broad-based gains across most pharma names also lifted the Nifty Pharma index over 1 percent higher, making it the sole sectoral gainer in today's trade.

The sentiment for industry major Dr Reddy's improved after brokerage firm Nomura upgraded its rating to 'buy' from the previous 'neutral' call. In the near term, Nomura sees the sustenance of above-average market growth in India and low-competition injectable launches in the US as key upside catalysts for the drugmaker. The positive views from Nomura helped fuel a nearly 4 percent spike in shares of Dr Reddy's, making it the top gainer on the Nifty 50.

Nomura's expectation of Dr Reddy's benefiting from GLP-1 opportunities in emerging markets also resonated with other pharma players, thereby lifting shares of Cipla, Sun Pharma, and others.