BSE Healthcare index of 69 major companies from pharmaceutical and healthcare segment closed lower by 47.71 points to 1,4749.30 points after announcement of Union Budget for 2017-18 by Finance Minister Arun Jaitley. The pharma segment was expecting additional tax relief from Budget proposals of strengthening intellectual property (IP) under technological innovation. Further, industry was expecting for a weighted deduction for R&D activities. However, Budget has not provided any concession despite global economic problem and competition.
Major pharmaceutical shares like Sun Pharmaceuticals, Dr Reddy's Laboratories (DRL), Aurobindo Pharma, Ajanta Pharma, Strides Shasun, Wockhardt etc declined significantly. Further, few scrips like Alembic Pharma, Cipla, Claris Life Sciences, Divi's Labs, Ipca Laboratories, Lupin, Sanofi India, Natco Pharma, etc also declined after announcement of Budget. Even MNC shares were under pressure and declined. DRL share declined by Rs. 24.15 to Rs. 2,996.90 and Sanofi by Rs. 38.25 to Rs. 4,067.
However, Alkem Laboratories, Piramal Enterprises, Pfizer, Natco Pharma, Jubilant Life Sciences, Abbott India, Biocon, Cadila Healthcare, Glenmark Pharma, Glaxo Pharma, received investors support and these shares moved up after announcement of Budget proposals. Alkem Labs moved up Rs. 32.35 to Rs. 1,700 and Piramal Enterprises by Rs. 33.70 to Rs. 1,723.95. Pfizer scrip went up by Rs. 18.80 today to Rs. 1,794.95.