Cipla, Ajanta Pharma, Alkem Laboratories Among Pharma Stocks Rising Despite Market Weakness

Pharma stocks outperformed the broader Indian equity market on Monday, with several companies recording strong gains amid a weak trend in benchmark indices. The Nifty Pharma index rose 1.65%, while Tatva Chintan Pharma Chem share price jumped 20% to ₹1,714.10 on the BSE, hitting a fresh 52-week high after the company reported its June-quarter results.

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Pharma Stocks See Broad-Based Buying

Torrent Pharmaceuticals and Mankind Pharma led gains among Nifty Pharma constituents, rising more than 3% each. Cipla, Divi’s Laboratories, Laurus Labs, Alkem Laboratories and Sai Life Sciences share price advanced over 2% each.

Zydus Lifesciences, Aurobindo Pharma and Ajanta Pharma also traded higher, gaining more than 1%. Outside the index, RPG Life Sciences, Thyrocare Technologies, Hester Biosciences, Onesource Specialty Pharma and Neuland Laboratories rose as much as 7%.

The gains came as the Sensex fell 671.29 points, or 0.86%, to 77,480.16, while the Nifty 50 declined 169.40 points, or 0.70%, to 24,164.75.

Domestic Business Supports Pharma Outlook

Sunny Agrawal, Head of Fundamental Research at SBI Securities, said the sector has been attracting demand amid improving earnings visibility, steady growth in domestic formulations and a shift towards defensive sectors during heightened market volatility.

Agrawal expects pharma companies to report healthy year-on-year revenue growth in the first quarter of FY27, led primarily by the domestic formulations business. Chronic therapies are expected to remain stronger than the broader Indian Pharmaceutical Market, while the U.S. business may deliver mixed results.

The outlook for the pharma sector’s earnings remains supported by new product launches and execution, although some generic businesses continue to face pricing pressure. Lower gRevlimid sales are also expected to weigh on the base business.

Q1FY27 Earnings In Focus

According to Agrawal, domestic growth is likely to remain an important earnings driver in the near term. Margins, however, could remain range-bound as companies continue spending on research and development, specialty portfolios and commercialisation initiatives, including opportunities linked to GLP-1 treatments.

The latest gains have also brought renewed attention to the pharma share price performance of companies such as Cipla, Ajanta Pharma and Alkem Laboratories as investors track the sector’s June-quarter earnings.

Over the medium term, SBI Securities remains positive on the sector, citing sustained healthcare demand in India and growing global outsourcing opportunities across contract development and manufacturing and active pharmaceutical ingredients businesses. The brokerage has identified Sun Pharmaceutical Industries, Ajanta Pharma, Alkem Laboratories, Divi’s Laboratories and Zydus Lifesciences among its preferred pharma stocks.