Pharma Stocks Lift Sensex, Nifty As Dr Reddy's Hits Record High

The pharmaceutical firm hit an all-time high and was the top boost to the Nifty 50 as it settled a patent litigation with Bristol-Myers Squibb Co over the cancer treatment Revlimid.

Pharma Stocks Lift Sensex, Nifty As Dr Reddy's Hits Record High

The Nifty Pharma index was the biggest boost to the markets

Bengaluru:

Domestic share markets rose on Friday, boosted by pharma stocks after Dr Reddy's hit a record high, and as broader Asian markets gained on hopes of more monetary support from central banks. The blue-chip NSE Nifty 50 index rose 0.34 per cent to 11,555.90 and the benchmark S&P BSE Sensex 0.17 per cent to 39,046.18 by 10:25 am. Both the indices closed more than 0.7 per cent lower on Thursday. The Nifty Pharma index was the biggest boost to the markets, rising 4.4 per cent following Dr.Reddy's near-7 per cent jump.

The pharmaceutical firm also hit an all-time high and was the top boost to the Nifty 50 as it settled a patent litigation with Bristol-Myers Squibb Co over the cancer treatment Revlimid.

"Other generic players like Cadila Healthcare, Sun Pharma... are currently into litigation on Revlimid and there is a chance that we can see... a settlement with these players as well," analysts at Nirmal Bang Institutional Equities said in a note.

Cadila Healthcare and Sun Pharmaceutical Industries gained as much as 3.4 per cent and 3.5 per cent, respectively.

Separately, drug maker Perrigo Company on Thursday issued a US nationwide recall of its albuterol sulfate inhalation aerosol product due to complaints over clogging issues.

"We see the (Perrigo recall) as a material positive development for both Cipla and Lupin," said analysts at Ambit Capital in a note. Both the companies have their own versions of the aerosol product approved by the US FDA.

Cipla shares rose as much as 6.5 per cent, Lupin jumped as much as 7.2 per cent to hit a more than three-year high.

Consumer goods giant Hindustan Unilever was the top drag on the Nifty, shedding as much as 1.8 per cent.

Meanwhile, broader Asian markets rose after central bankers globally indicated their readiness to provide further stimulus to help economic recovery.