Drugmakers Boost Indian Shares as Sun Pharma Snaps Losing StreakBy
Indian shares gained for the first time in three days as pharmaceutical stocks rose.
The S&P BSE Sensex climbed 0.5 percent, the most in more than a week, as Sun Pharmaceutical Industries Ltd. broke a seven-day losing streak to post the best performance on the gauge, while Infosys Ltd. surged to an almost two-month high. ITC Ltd. was the worst performer on the index.
|Index||Change||Size & Scope|
|BSE Sensex||0.5%||First gain in three days|
|BSE Healthcare||2.5%||Most gain in a year|
|BSE Realty||2.1%||Most gain in two weeks|
“While Sun’s foray into specialty will entail upfront costs and put pressure on near-term margins, the medium- to longer-term outlook remains strong as unlocking value from these assets should bring a significant amount of operating leverage,” Kartik Mehta, an analyst with Deutsche Bank Markets Research, said in a note.
The country’s largest drugmaker, which holds 40 buy recommendations against one sell and seven holds, slid the most in two months on Wednesday after its quarterly profit fell short of analysts’ estimate on lower margins.
* Cadila Healthcare Ltd. +19.8%; FDA issues no observation on plant
* Tata Consultancy Services Ltd. +1.4% on plans to consider buyback; analysts say share purchase won’t strain balance sheet; rival Infosys Ltd. +3.1%, said to hire JPMorgan as capital allocation adviser
* Colgate-Palmolive India Ltd. +2.7%; has 1.8% equity trade in block deal