The Bombay Sock Exchange Sensex of 30 leading companies touched to its all-time high level at 12,756 with strong support from foreign financial institutions and general investors. The strong economic indicators, better foreign reserves position, higher earnings projections in the second quarter by corporate sector, and investors confidence pushed the Sensex to its present peak level. The sectors like IT, Cement, Metal, etc attracted fresh buying support. The analysts caution investors and advise to book profit at this level. However, few of them projected the Sensex will move up further for few more sessions.
The Pharmaceutical segment also generated investor's interest and BSE Health Care (BSEHC) index of 25 companies improved by 18.59 points to 3657.52 on October 13.
Out of the 25 pharma companies in the BSEHC, the share prices of 13 companies moved up and that of 12 declined during the trading sessions. However, the share price of few leading pharma companies like Aurobindo Pharma, Aventis Pharma, Cipla, Divi's Lab, GSK, Glenmark Pharma, Orchid Chemicals, Pfizer, Wockhardt and Wyeth experienced selling pressure due to profit taking and felled to maintain the previous price level.
The growth in BSEHC is aided by higher price level of Dr Reddy's Lab, Lupin, Nicholas Piramal, Ranbaxy Laboratories and Sun Pharmaceuticals. Sun Pharmaceutical scrip went up by Rs 8.90 to Rs 919.75 and Dr Reddy's Lab moved up by Rs 14.45 to Rs 725.10. According to Pharma analyst, the sector is set to achieve strong growth in top line as well as bottom line in the second quarter of FY2006-07. The pharmaceutical companies are filing higher number of DMFs and ANDAs and expected to get more and more approvals for their products from US FDA in the next few months. This is influencing the upward movement of share prices.