The Nifty Pharma Index ended in the red on April 7, 2025, with key constituents witnessing profit booking amid a cautious market environment. Stocks like Biocon, Ipca Laboratories, Ajanta Pharma, Granules India, and Glenmark Pharma were among the top five losers, dragging the pharma index lower.
Despite long-term optimism around India’s pharmaceutical sector driven by exports and innovation, Monday’s trade reflected short-term volatility and sectoral rotation by institutional investors.
Biocon led the losses in the pharma index, falling nearly 6% on the day. The stock slipped below ₹300 during the session before recovering slightly. Despite the day’s decline, Biocon has still delivered a strong performance over the last 12 months, gaining close to 21%.
IPCA also faced heavy selling pressure, ending the day with a near 6% cut. The stock opened weak and remained volatile throughout the session. Despite the fall, IPCA has seen positive returns over both 30-day and 1-year periods, indicating resilience over the long term.
Ajanta Pharma dropped over 4%, extending its monthly weakness. The stock has been under pressure since the start of April, with market participants likely reacting to expectations of muted growth in Q4 earnings.
Granules India also featured in the top losers’ list, falling close to 4%. The stock has struggled to maintain momentum in recent weeks and has now declined over 7% in the last 30 days. However, on a year-on-year basis, it has managed to stay marginally positive.
Despite the 3.76% fall, Glenmark remains one of the best-performing pharma stocks over the past year, with a gain of more than 47%. Monday’s drop appears to be a short-term correction after a strong upward move.
The sharp fall in top pharma names on April 7 indicates cautious sentiment and sectoral rotation as markets await earnings announcements. While fundamentals for most companies remain sound, near-term price action may remain volatile, particularly as cost pressures and regulatory risks continue to linger.
Long-term investors may view this dip as a potential buying opportunity, especially in stocks with strong R&D pipelines and global exposure. However, traders should remain watchful of earnings triggers and any global developments that could impact sector performance.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 7, 2025, 9:18 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and asset management, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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