The Bombay Stock Exchange Health Care (HC) index of 21 major pharma companies touched to its 52-weeks highest level at 4040.45 points on September 18, 2009 on account of improved investor sentiment. With better than expected economic recovery, improved US numbers, limited foreign exchange losses in the current quarter and higher approvals in the highly regulated market offered the necessary push to HC index. At the close of the week ended September 2009, the HC index closed at 4023.54 points, a gain of 35.49 points as compared to 2990 points as at the first trading day closing of the year 2009.
The fear of economic recession put pressure on overall investor sentiment and several blue cheep companies hit at lowest level. The BSE Sensex of 30 companies was hovering at 9903 points on January 1, 2009. However, with recovery in US economy and change in political atmosphere in the country assisted the overall sentiment.
The volatile movements marked during last few months with selling and buying from foreign financial institutions. The BSE Sensex remained volatile but maintained its upward trend and touched to its 52-weeks peak level at 16802 points on September 17, a strong growth of over 69 per cent.
The HC index moved up by 34.6 per cent to 4023.54 points on September 18, 2009 from 2990 points on the first day trading of the year 2009. Thus the pharmaceutical scrips moved up slowly than the BSE Sensex scrip during the Jan-Sept period.
Almost all the major pharma scrips on BSE reached at their yearly highest level during September 2009. Ranbaxy, a subsidiary of Daiichi Sankyo of Japan, touched to Rs 360 on September 18 as against its 52-weeks highest level of Rs 375. Similarly Cipla went up to Rs 258.90 as compared to its peak level of 295. Dr Reddy's scrip moved up sharply to Rs 865 on rumours of stake sell to leading MNC, which denied by the DRL's management earlier. Other few majors like Lupin, Cadila Healthcare, Orchid Chemicals and Piramal Healthcare scrips also touched to their highest level during September 2009. Sun Pharma, Wockhardt and Glenmark scrip were under pressure and the price movements were restricted.
The MNCs shares also moved up significantly during the June-Sept period on account of higher dividends and strong fundamentals. The GlaxoSmithKline scrip touched to its 52-weeks peak level at Rs 1495, Aventis gets its new high at Rs 1525 and Wyeth scrip reached at Rs 733 on BSE.