Posts Tagged ‘Pharma-focused funds’

Select Pharma Stocks Gain On Tamiflu Demand :)

Pharma Stocks

As the Government is looking at ramping up procurement of the generic version of Tamiflu (oseltamivir), the share prices of those Indian pharma companies which might begin producing the drug, surged on Tuesday.

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The share prices of these companies gained between two per cent and 19 per cent.

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As the virus has reached pandemic levels with the death toll rising to fifteen and a large number of people having tested positive across the country, the Government is looking at stockpiling about another two crore capsules of the drug.

Tamiflu is currently being imported from Swiss drug maker, Roche.

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Ranbaxy, Cipla, Natco Pharma, Strides Acrolabs and Panacea Biotech are vying to produce the generic version of the drug.

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Strides closed up 4.78 per cent, Ranbaxy 6.71 per cent, Panacea Biotech 1.59 per cent and Natco Pharma 18.93 per cent.
Though Cipla closed the day down 0.48 per cent, it was up more than three per cent during the day.

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Mr Jagannadham Thunuguntla, Equity Head at SMC Capital said that the Government looking at stocking up the drug immediately would boost the reputation of these companies.
“This will not impact the bottomlines of these companies much.”

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The Swine flu virus, which emerged in Mexico and the US first in April, has been spreading to other countries. 😦

It is a global pandemic which has hit India much later than other countries. Globally more than 1.6 lakh people have been affected and 1154 deaths have been recorded, according to the World Health Organisation.

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The swine flu scare didn’t seem to affect the stock markets much as it ended the day flat; the Sensex closed up 64 points.

The BSE Health Care index was up 0.95 per cent, as 14 scrips advanced and 8 declined on Tuesday.

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Consumer-Goods, Pharma Funds Outperform Market in July

Consumer-Goods, Pharma Funds Outperform Market in July

Indian equity  funds focused on the consumer-goods and pharmaceutical sectors – considered defensive as they are less volatile – have outperformed the overall market in the past month as investors cheered the domestic demand and consumption story.

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As share prices started to slip from the high levels seen in mid-June, some fund managers turned defensive, fearing a sharp downside, which also led to more money flowing into these stocks, industry experts said.

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Funds investing in the shares of fast-moving consumer goods companies generated an average return of 17.6% in July, pushing technology-based funds – which gained 17.2% on good quarterly results at top software exporters – to the second place, show data from research firm Value Research.

Pharma-focused funds returned 9.8% during the month.

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In comparison, equity-diversified funds rose on an average 8.4%, while the Bombay Stock Exchange’s benchmark Sensitive Index gained 8.1%.

According to the seasonally adjusted Markit India purchasing managers’ index, the country posted robust manufacturing activity for the fourth straight month in July, suggesting government efforts to spur the economy have helped demand at home.

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Taurus Mutual Fund had turned defensive in June after a sharp market rally since early-March lows. The fund house recorded a 15.3% increase in assets under management over the previous month to INR6.47 billion in July, outpacing a 2.8% rise in the overall industry’s assets.

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According to Value Research, ICICI Prudential FMCG Fund was the best performer among the few FMCG-focused funds in July with a 22.7% return. Reliance Pharma Fund, which returned 12.5%, was the best performer in the pharma space.

Tata Select Equity was the best performing fund in the equity-diversified category with a 15.4% return.

“I think fund managers took a call on these stocks as they had not run up as much as others in the last few months,” said Jagannadham Thunuguntla, equity head at New Delhi-based SMC Capitals Ltd.

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For the past six months, FMCG- and pharma-focused funds have on average returned 46.2% and 52.6%, respectively, underperforming the Sensex, which has soared 66.3%, data from Value Research showed.

“With markets having risen sharply again (Sensex rose nearly 19% in the past three weeks) and the general sense that a correction may be lurking around … we may see money continuing to chase defensives,” said a fund manager at a small fund house.

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